Can I keep an insurance check without getting repairs done on my vehicle?

During a recent hailstorm, my car was damaged. I filed a claim with my insurer because I have a comprehensive policy, but I may need the money for something else. Can I cash the check without getting the repairs done?

Answer provided by
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Eric Schad
Answered on Apr 13, 2021
“The answer to this question depends on whether or not you own the vehicle. If you own the vehicle outright, you can keep the money without doing repairs.
If you don’t own the vehicle and have a lien on it, the opposite is true. Because the vehicle is collateral for the loan, most lenders will require you to get the necessary repairs, and sometimes the check will be made out to the actual repair shop.
If you get a check with your name on it, always ask your lender if you’re required to get the repairs done. Keep in mind that this is only possible if you have comprehensive coverage.”
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