Why isn't the car insurance claim check issued in just my name?

The claim check I received from my insurance carrier is made out to me and the auto body shop. I want to keep any extra money, not give it to them. Why isn't it just in my name?

Answer provided by
Shannon Martin
Answered on Apr 14, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“The car insurance company must write the check this way if there is a lienholder on the vehicle. They can make the check out to you and the repair shop, or to you and the bank, but if you still owe payments on the vehicle, they cannot write the check to you directly because the finance company still has an interest in the vehicle.
You can also give the insurance company permission to issue the payment directly to the shop. Sometimes they call this a “”direction to pay,”” or a DTP.
If you have already paid off the vehicle, you need to notify the insurance company so they can remove the lienholder from the policy.
If you would like to work with an agent who can answer questions and make changes for you easily, give Jerry a try. You can update your policy just by sending a quick text in the Jerry app!”

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