QuestionMy 3 year old car was involved in a minor accident on private property. A driver backed into the car and readily admitted fault and we exchanged papers. The damage was two small dents to the right front bumper. I obtained an estimate as required and the claim was approved and a check issued for the amount of the estimate.
The damage is not very noticeable and is something I can live with. Am I legally bound to use the check for the repair or can I use these funds for any purpose? I live in NH.
Answer you make a third party claim (a claim against someone else's policy) than you are free to use the funds as you wish.
Do keep in mind however, that plastic bumper covers will disguise the majority of the damage that could possibly exist behind them. If you elect not to repair it, then years down the road discover hidden damage, you'll be taking the risk of having the statute of limitations run out on the claim and will be unable to collect additional monies owed. Even if the statute has not run, you may have a difficult time convincing the insurance company that the damage is related.
One other issue that I've found with cars is that when you let one thing go, it's easier to let the next thing go and so on. Before you know it a few years down the road, you're trying to sell or trade a car with multiple damage areas and cannot get much for it.
What I usually recommend when receiving money for damage that won't be repaired is to either send it to the bank to lower the loan balance or put it in a special automotive savings account that will give you a bigger down payment on your next car.
Good luck and I'd appreciate your feedback.
