Auto Insurance Claims: Can I choose to leave the damage without repair?, insurance estimate, own insurance


Question
QUESTION: Is my insurance still obligated to pay for my vehicle damage if I chose to leave the damage without repair?



ANSWER: Hi Lou,

You are not obligated to repair the vehicle. However, if you are dealing with your own insurance company and you have a loan on your car, they will issue the check to both you and your lienholder. Then you will not be able to cash the check until the repairs are completed.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Thank you for your answer. You said, you (the insured) are not obligated to repair the vehicle. So the insurer should mail the repair check to the insured directly regardless of the car is eventually repaired or not. Is it correct?

ANSWER: Hi Lou,

That is correct. Unless you have a loan on the car. Then they will issue the check to you and your loan company.

Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Thank you for your answer. Can I ask one more question? I got several repair shop’s estimates that are all higher than the insurance estimate. The difference is due to the different labor hours, rate between the repair shop and insurance estimate but the damages are identical. Since you said the insured is not obligated to repair the vehicle, can I demand my own insurance send me a repair check based on the repair shop’s estimate instead of the insurance estimate or the insurance only send the differing amounts to the repair shop directly or I must have my car repaired, then the insurance can send me the check based on the repair shop’s estimate?

Answer
Hi Lou,

Generally the insurance company will pay based on their own estimate. Then only if the car is actually in the shop for repairs will they pay additional amounts when the vehicle is actually in the course of repair.

I hope this helps
Richard Hixenbaugh