Can I Make An Insurance Company Pay The Claim To Me, Not The Shop?

By Mike Anderson Posted in Car Insurance News



Wanting Payment Claims Paid Directly To You

According to most state laws and the state office of the Insurance Commissioner, there are specific laws surrounding the issue of car insurance being allowed to make claim checks/payments directly payable to the insured. These policies are pretty straightforward in the requirements and procedures.

First, your car insurance company has policy “language” in regards to whether it is required to repair your car in the event it is damaged in an accident. This is regardless of whether the car insurance company will pay the claim check directly to you or the body shop that has agreed to repair the damages.

If your state or insurance company requires the vehicle to be repaired once you file the claim, then the insurance company will make the check payable to both you and the body shop. This is to ensure the insurance company that they are still insuring a vehicle of original value.

If, however, your vehicle is paid off, meaning you own your car without any lien holders with vested interest, then the car insurance company will be more apt to make the claim check payable directly to you. If there are no requirements by the state to have your vehicle repaired after a claim has been made.

Issues To Remember When Requesting A Direct Payment Of Claim

Remember, your insurance company may have a requirement of the policy whether it is necessary to repair your car after it has been damaged. This will be important to learn before you purchase your policy.

Most insurance companies will automatically write the check to the policyholder and the body shop. And too, if the car has a lien holder, the check will be made payable to all three.

The only exception to this rule is if the vehicle is free and clear and the insurance claim check is coming from the insurance company of the other person in the accident/claim.

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