Can I cash an insurance claim check if I still owe money on my Chevrolet Tahoe?
I was driving my Chevy Tahoe last month when I hit a deer. The collision caused extensive damage, but I had full coverage. However, the claim check from the insurer was made out to the body shop and me. Is there any way that I can cash the check?
Apr 16, 2021
Answer provided by
Answered at Apr 16, 2021
“Hope you’re all right after the collision! It’s a good thing you have full coverage, including comprehensive coverage. Otherwise, the repairs would have come out of your pocket.
As far as cashing the check goes, you can’t do it because it has the auto body shop’s name on it. The money must go to the auto body shop for repairs.
Even if only your name were on the check, you still couldn’t cash it because you don’t own the vehicle—the lender does. When you finance a vehicle, it’s collateral for the loan. As a result, the lender has a vested interest in fixing your vehicle and preserving its value in case you default on your loan.
If you owned the Tahoe, you could use the money however you see fit.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How much money should I put down on a car that I'm financing?
I don't want to put more money down than necessary. What's the percentage figure I should be aiming for?
Mar 12, 2021
Do I really need to keep my auto insurance policy if I'm moving to a big city with plenty of public transportation?
I am moving to Atlanta and thinking about getting rid of my car. The cost of insurance and gas and parking is so expensive there. They have an active public transportation system; I can walk or ride my bike everywhere and Uber other times.
Apr 29, 2021