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
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Eric Schad
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.”
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