Auto Insurance Claims: vehicle damage embursment, lienholder, finance company

Question
If I get into an accident and it is concluded it is not my fault and the other driver's insurance sends me a check for the total damages, am I required to repair the car with the money or can I keep it and not get the vehicle fixed?

Answer
Hi Mason,

You are not required to have the vehicle repaired in most situations. One exception might be if you have a loan on the car and the loan company is listed on your policy as a lienholder, then the insurance company may be required to make the check payable to you and your finance company. Then the only way to cash the check is to get the finance comapny to sign off on it which they will not do unless the vehicle is repaired. If you have no loan on the vehicle then you can do what ever you want.

I hope this helps
Richard Hixenbaugh