Auto Insurance Claims: vehicle damages embursment, insurance company, caveat

Question
If I was in an accident and it was proven to be the other driver's fault and their insurance sends me a check for the damages for my vehicle, am i required to use that money to repair the car or can i do whatever i want with the money?

Answer
Hi Kasey,

It would depend on if you have a lien on the vehicle. If you own the vehicle free and clear, it would be descretion on how you wanted to spend the money. The caveat though  is that you can't go back for more money if you decide to fix the car once you signed the check, because this releases the insurance company from any future damages that are found repairing the car. Otherwise--have fun!