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?

Answer provided by
Eric Schad
Answered on Apr 16, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“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.”

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