Am i required to repair my car?

Question

I got into a little fender bender and the other driver's insurance company gave me 1500 for the estimate for the damage to my car. It's not undriveable, mainly a big dent in the bumper. But i'm wondering if i'm required to get it repaired because i'm still making payments on my car. Anyone know the law on that, specifically oregon law?

Answer 1

my guess and experience has always been that if you are still making payments on the car, then yes you have to get it fixed. from a legal standpoint, if the car were to be repossessed, the finance company could sue you for the damge to the car. best you could do, would be to contact a salvage yard and see if you can do the work yourself and save as much of the money as you can, but to answer your question, yes you have to get it fixed.

Answer 2

Since it was the other persons insurance company that paid they do not care what you do with the money. If the car is leased you will either have to repair it before turn in or pay for the damage then. If you own it and are just making payments you can do what you wish with the money. Keep in mind that your car is now worth less in the damaged condition so any future claims(stolen veh or another accident with similiar damage) may result in a smaller settlement. Bottom line you are not under any legal obligation to use the money to repair the car.

Answer 3

This is why the check is suppose to list you and the leinholder both of the check. But some how you got by, so it's up to your conscience. If you owned the car, you do what you wanted to with the money. I got a new roof out of one accident. New carpeting out of another. I didn't owe any money on the vechiles, and so I used for a better things then fix a car that I was going to get rid of anyways. You can do what you want, but if the car is repossessed you are going to be responsible for the damages and whatever money that is not recovered after them selling it. So, it's up to you. I don't know Oregon law, so you should ask to make sure, but the state I am in, there's no law that says you got to, but it's implied that you should. God bless us all...........

Answer 4

If you're still making payments, you'll have to get it fixed. The check will be cut with both your name and the lienholder's name on it. The lienholder is going to insist that you get it repaired. Your loan contract stipulates that you must maintain the vehicle in a good state of repair at all times to protect the lender's security interest in the vehicle.

If you owned the vehicle free and clear, you could do whatever you wished with the money. However, if you were to subsequently total the vehicle, the insurance company would deduct for the previous un-repaired damage.

Answer 5

it is surprising the insurance company paid off without putting your lien holder on the check too. that is the way it is normally done to make sure you follow through and make the repairs. if you are going to pay off the car and can live with the damage, the lien holder would never find out you pocketed the money. same as if it happened in a parking lot and they didn't leave a note. let your conscience be your guide.

Answer 6

If it's your car you are not required to do anything. For example - the insurance company gives you 1500 to fix it but your mechanic can do it for 1000 - so there is 500 left over - that's yours to keep. Keep in mind when you go to sell if if it's not fixed, you may have to fix it at that point. But as for a requirement - no.

Answer 7

Another persons insurance coverage does NOT apply to you. You have no contract with them, therefore, no obligation to repair your vehicle. You can spend it on beer, bills or (in a pinch) body repairs!
PS -- the other guy's company also does NOT have an obligation to your leinholder or to a body shop. It is your car, it should be your check.