Consider this scenario: you were in an auto collision. You went through the channels with your insurance company and put in a claim. Several weeks later a check came in the mail. Can you keep the car insurance claim money, or are you required to spend it on car repairs?
In most instances, the insurance policy does not require you to spend the car insurance claim money on collision repairs. The insurance company has no stake in whether you repair your car or spend the money elsewhere.
A few circumstances, though, may require you to repair your vehicle. This is the case if you have a loan on your car. In this instance, the insurance company may include the lender when sorting out a claim. The lender may include provisions under the agreement requiring car owners to spend the settlement check on repairs. After all, they want the car to be in normal condition in the event you can’t pay back the loan and they repossess it.
We recommend that you bring your vehicle to Absolute Auto Body for an assessment of the damage. You definitely need to repair the vehicle if damages affect the car’s operation. This includes damages to vital parts, such as the tires, wheel bearings, suspension, cooling system, or seat belts.
If damages are limited to auto paint or other cosmetic blemishes, then you may certainly choose to hold onto the car insurance claim money.
Always know the extent of damage before deciding what to do with the claim money. Should you decide to proceed with repairs, our service comes with a VisionPLUS Lifetime Warranty. In any case, always acquire a professional opinion before deciding whether to keep the car insurance claim money.
Edited by Justin Vorhees
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