Questionhi, i just received the check for the total estimate calculated from the insurance company, i was wondering if i could cash it, or should i wait until the repair shop finds out that amount will be okay?
AnswerHi Maria,
Carefully read any typed or stamped statement on the back of the check.
It may very well say that by signing the check you are fully releasing the insurance company from any and all future damages for the accident listed on the front of the check. This means that if the shop is not willing to do the work for the amount of the check, or if once they remove the damaged metal, they find 'additional' hidden damage (which is quiet frequently), The adverse insurance company will NEVER pay another penny toward your damages.
Even if that wording does not appear, you should talk to the shop to verify that the adverse company has agreed to pay him for any hidden damage that he might find.
Even if they have agreed to reimburse the shop for additional cost, I suggest that you simply sign the check over to the shop instead of cashing it. The shop is going to need money up-front to purchase the parts they need to repair your car.
If the back of the check contains a 'release of all claims', do NOT sign it under any circumstances.
I hope this has been of help, please write again if you have more questions.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 12-19-07 6:02 PM PST
