Auto Insurance Claims: auto insurance, tornado damage, cash settlement

Question
I have tornado damage to both my vehicles. I have no lein holder. The insurance co has written a check to me and the body shop (the most expensive in town). Am I required to fix my vehicles? Do I have the right to go to another body shop for another estimate? Can I simple keep the money? Or use it to purchase another car?

Answer
Hi Niles,
The legal wording of your policy spells out the obligations of the insurance company.
Under the legal wording for "damages to your car", the wording clearly states that their obligation when handling a comprehensive or collision claim is to repair your car.

At no point in your policy is the mention of "cash settlement".

Since there is not a lien holder on either of your cars, most insurance companies will reluctantly discuss cash settlement if you
bring up the issue.

If they are willing to do a cash settlement, they will probably require several more estimates and then make payment on the lowest one.

At the same time that they give you a check as cash settlement,
they also must remove comprehensive and collision from each of your cars.  They can't leave that coverage on vehicles that already
have lots of damage.  Once the cars have been repaired and inspected by your insurance company, they will be willing to add the coverage
back to your policy.

I hope that you find the above information useful.  Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area