After a car accident, can I get an estimate of damage, and just keep the...

[HT13]

...money, meaning not repair the car? Regardless if I was at fault or not, can I just choose to keep the money or do I actually have to have the car physically repaired? For example, I have a $500 deductible, and I think the damage is more like $1200, can I have the insurance mail me the check for the difference, or do I have to actually have a shop repair it, meaning end up paying a $500 deductible? Thank you.

 

[sydkan]

If you own the car outright, meaning no lien, then the money is your's to do whatever you want with. However if you have a lien the insurance company has a legal duty to protect the lienholder.

 

[Smelly Cat]

In most situations, you will never see the money. Who was at fault is an issue.

 

[Mary C]

I'm sure that this varies from state to state. But my experience in the last 20+ years is that the check is issued to you AND whomever you have chosen to fix the damage. This is with both auto and homeowners' insurance. Years ago, you would get 3 estimates and the insurance company would send you a check for the average of the estimates. You could fix it or not. Nowadays, they want to be sure that the damage is fixed -- and usually body shops will fix the damage for whatever the insurance will pay, regardless of the amount of the estimate. (It's kind of kind doctors who cut their bill to whatever the medical insurance will pay. If you don't have insurance, you are billed for the full freight!) Insurance is a racket!