QuestionI have a 2004 Nissan Sentra that was recently damaged by a hailstorm. I have 3 estimates and full coverage. I desire to accept the insurance check as settlement and live with the damage. Can the insurance company legally make me let a body shop repair the damage in which I will have to pay a $500.00 deductible. The lowest estimate is $1030.00. I want the check wrote out to me only. I live in Rome Ga. 30161. The insurance company is Alfa Ins. Co. Your help will be sincerely appreciated.
AnswerHi Stephen,
The legal wording of most policies, under car damage, stipulates that the insurance
company will pay the loss in money or repair or replace the damage.
Two major factors come into play when they consider the method of payment.
If your car is being financed, they must require that the car be repaired. A condition
of your loan requires that you carry insurance and that your company provides the lender
with proof of insurance. In all cases where a car is repossessed with existing damage
the lender will force the insurance to pay for the damage less the appropriate deductible.
Of course, this means that the insurance company will have paid twice for the same loss if
they cash settle on a loss and the vehicle is later repossessed.
The other factor is insurance companies do not put comprehensive and collision on
vehicles with existing damage. So if your car is paid off and you wish to cash
settle, you will be required to eliminate comp and coll from your policy until
such time after the car has been repaired and inspected by the company in order to
add the coverage back on your car.
I hope that you find this information helpful. Your feedback by rating my response will
be appreciated.
Bennie
San Francisco Bay Area
