Auto Insurance Claims: Obligated to repair?, insurance fraud, friend sign

Question
A friend of mine was in an accident.  His vehicle received minor damage, and he's received payment from the other driver's insurance company to cover the damages.  The car is older, and he's now having second thoughts about getting the repairs completed.  Once he received payment, is he obligated to have the car repaired?  I thought it sounded like insurance fraud, but he claims he's justified in keeping the money as the value of his vehicle has now decreased.  Can you give me your opinion please?

Thank you.


Answer
Hi Sue,
Once the adverse insurance has issued a check for the damages and had your friend sign a release of all damage for property damage, he becomes free to spend the money any way that he chooses.

He can repair the car, pay a bill or take a vacation.

I hope that this information is found to be helpful.  Your feedback by rating my response to this question will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area