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
“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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Eric Schad
Answered on Apr 13, 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.
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