Auto Insurance Claims: Auto Insurance two party check, two party check run-around

Question
My insurance company sent a two party check to my motorcycle shop. I was responsible for purchasing parts for my motorcycle to be repaired, while my shop would do the labor. I needed money from the insurance check to purchase the parts, but the shop would not release it until taking out 30% for their own taxes saying that it is required for all two party checks to cover the 1099 at the end of the year. This is ridiculous! Is this illegal and called skimming?

Answer
Nicole,

   I cannot answer your question without seeing an estimate amount, a check amount, and a policy.  Switch to another motorcycle shop.  Taxes do not account for 30% of a repair so that explanation from the shop does not fly.  

   Remember, you are the owner of your bike and nobody can tell you where to repair it.  You are also the owner of your insurance policy, and depending on how the policy is written, you may be able to force the insurance company to write the check directly to you.  If you don't have a loan on the bike, then any repair claim is yours and yours alone.  Anyway, I hope this helps.  Sounds like to me you're not getting the whole story.  


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