Do You Have to Get Car Fixed With Insurance Money
Do you have to get car fixed with insurance money? Well, that really depends on whether or not you fully own your vehicle.
If you took out a loan or have a lien on your vehicle then it might to wise to check through your terms and conditions. The likely answer will be no; as insurance money for repair go’s direct to the recommended auto repair shop provided by your insurer.
We talk about several factors to consider in this article, Do you have to get car fixed with insurance money? Well read through this article to get all the information you need.
- Do You Have to Get Car Fixed With Insurance Money
- If I own my car, can I keep the money from an insurance claim?
- Can I Repair the Car Myself?
- What if I Have a Car Loan?
- Could I Lose Insurance if I Don’t Repair the Car?
If I own my car, can I keep the money from an insurance claim?
If you own your car outright, you can choose to not repair your vehicle for financial reasons, or delay repairs with the money you receive from an auto insurance payout. Simply put, you do not have to use any of the compensation you receive from an auto insurance company on repairs. That said, here’s a few things that you should consider before making this decision.
Can I Repair the Car Myself?
You will likely not be allowed to repair the car yourself that is if you have a lien on your car. Your lender may even require you to use an approved repair shop or at least one that guarantees its work.
If you own your car outright, you may be able to fix the car yourself. Do you have to get car fixed with insurance money? Check your insurance policy or ask your agent. Just be sure that doing your own repairs won’t affect your coverage.
What if I Have a Car Loan?
If you have a loan on your vehicle, it means you should get the car repaired. Again, your car insurance company may assign or need to pre-approve the mechanic. Your lender will want their collateral the car to be fully working and want you to repair any damages.
If you are still making payments on the loan, you do not own the car free and clear. As a partial owner, it is your duty to get the vehicle repaired in a timely fashion. Many lenders require that they are listed on your auto policy as a loss payee. This is to ensure you have full coverage on the car at all times. That’s also how lenders know if a claim was filed.
Do you have to get car fixed with insurance money? It is good to know up front whether the repair of your vehicle is required. Insurance companies all use the same basic guidelines when it comes to repairs; however, it can still vary per insurance carrier.
Owning your vehicle outright gives you more flexibility when it comes to repairing your car or not. An insurance company will often give you the option to repair, total the car out, or buy it back. That is the option of giving you the car back, plus the cash value of the car, minus the auction price the company believes they would have received from a salvage yard.
Could I Lose Insurance if I Don’t Repair the Car?
The insurance company will require repairs if you want to continue your vehicle’s comprehensive or collision coverage’s. The insurance company does not want to keep insuring a vehicle for future physical damage if the vehicle was already damaged and not repaired.
A second accident would compound any existing damage. If the insurance company paid you once for the preexisting damage, they would not want to pay you more for any compounded damage.
It’s a standard procedure for the insurance company to require you to drop physical damage coverage from a vehicle that was not repaired. Proof of the repair is usually handled by making a claim check out to both you and the body shop doing the repairs.
Photos and receipts can also serve as proof of repairs if you want to keep your coverage.
When it comes to buying back your totaled vehicle anything causing a major safety issue will need to be repaired. States may also differ in what they ask to get the vehicle back on the road. For instance, New Jersey requires a salvage certificate for vehicles over eight years old. It then requires a special inspection to be sure the vehicle is road-worthy. Insuring the vehicle, in this case, would depend on the inspection results and may not be worth the expense.
Frame or other structural damage could cause an insurance company to deny coverage. You should always check with your claim adjuster about insuring a previously totaled car.
Thank you for taking the time to go through this article we hope the information you need was provided. Do you have to get car fixed with insurance money? Well, it’s really a matter of if your car is insured or owned outright.
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