How to cash auto insurance claims checks?

by flamak25 » Sat Sep 06, 2008 09:20 pm

The procedure of cashing out a check may vary from one company to another and if you are cashing out a check you may call the issuing company to ask what their requirement is to cash the settlement check.

Here are few steps you may follow:
  • You may call your lien holder or the bank and let them know that you have received the check for insurance settlement and that it is payable to the policy holder and the company.
  • Get your check endorsed and ask the company to endorse their check too. You can find out from the lien holder which department you need to send their check to. After getting it endorsed the company will send back the check to you. If there are any other payees on the check they must get the check endorsed too, even if it is your spouse.
  • After the lien holder and other related people have endorsed the check you must deposit it in your bank account.
  • Wait for clearance and then you may issue your personal check to your lien holder who you owe money. It may be your auto repair shop or the contractor who has got your home repaired or any other related person or company.
  • If your check amount is large some banks may require you to produce a report for insurance loss and also the bid placed by a contractor or a body shop for which you need to make the payment.

Is it difficult to cash an auto settlement check if your car is repoed?

Not if the check is in your name and the lien holder's. But if the insurance company has put the check in the name of the lien holder you might have a little difficulty in getting the balance amount back. They might give you a proposal to get the car repaired and use up the balance amount you think you deserve. If this is the case, you may contact them and ask them what procedure they follow after you have endorsed a check and mail it to them.

What are your rights when your car is repossessed?

If your car is repoed, you may contact the lender and try to negotiate a payment option. Repossessing your car is not the best option for your lender since they lose out thousands of dollars doing this. So, usually they would like to work out a payment plan with you and try to prevent their loss.

When you sign an agreement document with your lender you must first go through the terms mentioned in the document. It is supposed to have rights you possess in case you default on a payment or if your car is repossessed. Make sure you know your rights and be aware to not be fooled in to any action taken against you that is not legal.

Related Readings

i had my vehicle repoed before I could fix the small damages and the lein holder has closed out the account with the account stating paid-closed credit line , but i have a balance of 900.00$ left owe to the lein holder , can i take my 2300.00$ automobile insurance claim checks (it's made out to ,me and the leinholder ) and pay off the balance and keep the rest , or will they take the whole check ? can i get into trouble if i cash it with the leinholder ?thank you very much for your response..

Total Comments: 61

Posted: Thu Oct 14, 2010 05:20 pm Post Subject:

Now...when I take my car to a body shop to get it repaired, will I have to pay my 500 deductible?

Yes... think about it. You never "paid" your deductible. Check your bank account... it's not short $500. Your insurance company paid you for the cost of repairs less $500. You will now need to pay the shop an extra $500 to pick up your vehicle.

Posted: Tue Oct 19, 2010 05:52 pm Post Subject: look up sometimes!!!

my car was damaged by welders welding on top of the overpass. it damaged my hood and windshield. I own my car and have provided necessary estimates to the construction crews insurance company. why do i have to show them a clear title to receive the check with just my name on it. Not a problem just wondering why

Posted: Tue Oct 19, 2010 06:17 pm Post Subject:

They don't need to have it to verify if their is a lien or not (they may want it for this reason but they are not required to) but they have every right to confirm ownership from the title. I've done it... and found out the person making the claim was not the owner.

Posted: Sun Oct 24, 2010 07:52 am Post Subject: is the first check mine to cash?

check received for damage then second accident totaled car and pd. it off before i cashed first check .is the first check mine to cash?

Posted: Sun Oct 24, 2010 09:39 am Post Subject:

is the first check mine to cash?

Yes. The insurance company should have deducted the damages from the 1st accident as prior damage. If they did not, then this was their mistake.

Posted: Tue Jun 07, 2011 12:26 am Post Subject: Received Insurance Check

I was in an auto accident and my auto insurance paid my medical bills from when I was in the hospital. A few months later I received a bill from the emergency room doctors and I recieved a check from my HEALTH Insurance providers because the doctors billed my health plan instead of my car insurance. I called the docs and asked them to bill my car insurance. What should I do with the health insurance check? Can i use it to pay unrelated medical expences/

Posted: Tue Jun 07, 2011 12:34 am Post Subject:

If your doctor sent the bill to your health carrier why would your health carrier send you a check?

If you use the funds for something else 1) you might be committing fraud, 2) your health carrier may eventually find their mistake and ask your auto carrier for payment (see 3) and 3) your health carrier may very well eventually ask you to pay back those funds (rightfully so).

Lastly, see my sig!

Posted: Wed Aug 24, 2011 01:15 am Post Subject: scQKTuIlmlegv

Thanks guys, I just about lost it lkoonig for this.

Posted: Mon Oct 03, 2011 10:49 am Post Subject:

Can i deposit a two party insurance check made out to me and doctor's office?

Posted: Mon Oct 03, 2011 12:46 pm Post Subject:

Can i deposit a two party insurance check made out to me and doctor's office?


Only once they sign it.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.
Get new captcha!