Two-party Claim Check Question

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Posted: Tue Aug 23, 2011 10:42 pm Post subject: Two-party Claim Check Question

My car was recently in a really bad hail storm. I have no deductible on my coverage and so I took my car in to my insurance catastrophe center and had an estimate done. They cut my a check for the amount they thought it cost to get it fixed. I still owe on my car so the check was made out to me and the auto body shop. I did not tell the body shop how much my insurance gave me but his estimate was almost a lot less than what my insurance gave me. I would like the work done there but i am also interested in keeping the extra money. How would i go about doing that?

cheetahboom

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Posted: Tue Aug 23, 2011 11:46 pm Post subject:

As your lien holder what it takes to get them to sign the check. Start there.

tcope

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Posted: Thu Aug 25, 2011 5:45 am Post subject:

If your insurance has made out the check listing the names with the word "or" in between the names, then either person may cash the check, without the other's permission. But in all probabilities you got a check issued to two payees, with the word ‘and’ in between names. So, both will have to endorse it before the bank will cash it. If the lien holder is a bank then it might be tough to keep the extra cash to yourself. Since, the lien holder is still the actual owner of the car; he might even want some extra repairs done with the insurance money, in order to prevent further damage. However, see if you can fix up something with the body shop guy. _________________ Register Now to have your Insurance queries solved.

Mona Wayne

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Posted: Fri Aug 26, 2011 10:06 am Post subject:

Quote:

Ask your lien holder . . .

and

Quote:

If the lien holder is . . . Since, the lien holder is . . .

You've both misread the OP's post. The check was made in the name of the BODY SHOP and the OP. The lienholder is not part of the discussion and so your comments are erroneous.

To the OP . . . just take the check to the body shop, pay them what you owe and have them endorse the check back to you. They are only entitled to their invoiced amount of the repairs. You are entitled to keep the difference and do with it as you please.

Quote:

the lien holder is still the actual owner of the car; he might even want some extra repairs done with the insurance money

This is entirely incorrect. The lienholder has no business telling anyone to make more repairs than are necessary.
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