QuestionI was involved in an accident and the other driver was at fault. No one was hurt, and her insurance company will be paying for the damages. My car is completely drivable and the damage is mostly cosmetic. According to the estimates, it looks like repairs to my car will run about $3,500. Instead of having the repairs done, I would like to put the money toward paying off my loan (my balance is approxinagely $4,500). Is this an option? If so, do I just tell the insurance company my preference and ask for a check to be sent to either myself or my finance company?
Thanks!
AnswerHello,
The check may be written to the finance company, you and the body shop anyway.
The lien holder might have concern even though you would be paying a majority of the debt, they do have a damaged piece of collateral (your car). They may or may not go for this option and you will need to contact the lien holder first and float that option at them. The other concern is that if you are subjected to a safety check like we are in Texas, will the car pass such a check?
Bottom line, I think your idea is good, but since you are not repairing the insurance company may also give you less than the appraised estimate.
If you can pull all this off after speaking with your lien holder and the insurance company, I hope this works out for you.
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