Auto Insurance Claims: Stolen Car settlement paid car recovered, rental coverage, stolen car

Question
My car was stolen on Jan 18th. I filed the complaint with My insurance company (Progressive). After two weeks the adjuster cut me a check on 1/31. Today the car was found and the adjuster called me and inquired about the check. I told him that I was going to deposit today.He  then said that the repairs would me much lower and he wanted me to void the check and he put stop pay. Meanwhile last couple of days I have been shopping for a car and almost bought one. I asked the adjuster if I still could cash the check but he said no. He also said that the settlement is not good until the check is cashed.
I have not received any written documentation saying that the settlement has been reached except for the check.
Instead of getting the car back I would like to buy the one that I almost bought.

What do you suggest?

Thanks
Sri

Answer
In order for Progressive to have sent you a settlement draft for the net (after your deductible) Actual Cash Value (ACV/"book value") of your car they more than likely extended you an offer to settle that you accepted and resulted in them sending you the draft.. that acceptance (on your part) SEALED THE DEAL.

It is customary for insurer to wait at least 30 days to see if the car turns up.. if Progessive had done that you would not find yourself in this position.

I'm curious as to what possessed Progessive to move so quickly to conclude/settle the claim..

Did you have rental coverage and were you in a rental?  Some carriers will settle early in order to limit their rental exposure.... is that what Progressive did?

Progressive should not be permitted to "have their cake and eat it"......

Have you signed over the Title to your old car to Progessive?

Was their a lender involved and have they been paid off?

Progessive should be able to salvage/sell your car and recoup most of their payment to you...

I would go ahead and deposit the check and see what Progessive does... if they attempt to block or stop the draft I would contact your state's Dept of Insurance and file a formal complaint.  Make a copy of the draft (for your records) before depositing... wait to see if it clears before trying to use any of the proceeds...

I would also ask the Dept of Insurnace for a copy of your state's Fair Claim Parctices act to see if it says anything about a secenario such as this.

Bottom-line I feel that Progessive is NOT being straight with you....

Hope and trust that the above answers your question(s) and provides some direction.

Feel free to get back to me with any further issues/questions relative to this matter.

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Thanks