Auto claim check made out to me and bank, how do I pay to get it fixed???

Question

I have a question, my car recently got broken into, personal things were stolen as well as the 3rd row seats (it's an SUV). The insurance claim adjuster could not find used quality seats at the time of the claim, so they had to cut me and the bank a check for the cost to replace them new, totaling around $7,900. I was looking on the internet and found used quality seats for around $2,000. Here's the problem, the bank won't endorse the check without the repairs being done, and I don't have the money up front to pay for the seats. Also, what happens to the remaining money, do they get to keep it? It's almost as if I was the repair shop, doing the repairs myself, which I know is legal, because I can have it done ANYWHERE. So what should I do? If I go to the bank and tell them the situation will they cut me a check for $2,000 and keep the remaining $5,900? My insurance will more than likely go up because of this, so if that's the case then forget it, I'll just send the check back!!

Answer 1

Contact the insurance company and ask them to cut a check co-payable to you and the shop, then that way it ensures that the car gets repaired, but you don't have to deal with the lienholder. You should also not be looking to pocket the difference. That is wrong! If you've determined you can get this work done for less, you should tell the insurance company. The money that is paid on that claim comes out of everyone's pocket, not the insurance company's.

Also, this is a comprehensive claim, and rarely do premiums go up from those.

Answer 2

Go to the repair shop, have the work done, hand them the check with your endorsement. They will take a receipt and the check to your bank who will endorse it and he will be paid. If you find someplace that will do the repairs, and they meet the standards set by the insurance, and there is money left over, the bank will send that as a refund to the insurance company. But you can't make a profit, only have your covered repairs paid for. If you just send the check back, the bank, who owns your car, may not be happy owning a car with no rear seats and may ask you to pay the vehicle off, or have it repaired to their satisfaction.

Answer 3

Call your insurance adjuster and ask him what to do about the check. Also inform him of the location of the used seats. Contrary to the answer that insurance companies would prefer to use new parts, wrong. When at all possible depending on the part they want the cheapest way to fix your car period. Let them make the decision about the check and avoid some insurance fraud case later. All the bank wants is proof that the car is fixed to cover their investment. Insurance is not for you to make a profit from, which is why you can not fix the car yourself, its called a conflict of interest. The bank wants a receipt for the repairs made and it will be filed with your loan from a repair shop, not John Doe car fixer.

Answer 4

The repair shop will locate a used seat (for a LOT less than $2,000.00) and supplement the insurance co. for the additional amount. They do it every day, no big deal. Your bank will have to endorse the check, again this is done every day, the repairer will know what to do. It is perfectly legal for you to keep a portion of the money and not have repairs done. Since the bank really OWNS the car, they also have a perfectly legal right to protect their portion of the vehicle by either using the check to pay off the loan balance or repair the car.

Answer 5

Some shops will deal directly with the lienholder and take the check from you. As far as the used seats, I would recommend going with the new ones to eliminate any problems in the future. Ins. companies will sometimes go with new parts rather than used to eliminate any claims for inferior parts. They should also tell you if this is an at-fault claim. I do not believe it will be and would not affect your premium. Just make sure if the shop takes the ins. check they use the correct parts. Some insurance companies have you sign a cerificate of repairs which states that the car was repaired according to their estimate.

Answer 6

It sounds like you want to profit beyond getting the vehicle fixed. It also sounds like the bank owns the vehicle not you,,,at least not yet, hence the check is made out to both, and both will have to handle the transaction, but in the end, the bank still owns the vehicle, and will determine how it's to be fixed. You may negotiate, but why bother.

Rev. Steven

Most decent auto repair shops, especially doing insurance work, will take what the insurance company offers. Perhaps you should seek another repair shop

Answer 7

Did you ask the insurance co if they could make the check co-payable to you and your shop of choice? They can do that. The remainder of the money, belongs to the insurance co. Talk to them about taking it to a shop of your choice and get the check back from the finance co and have the Insurance pay the shop. You are not to profit from a claim, but to be made whole from a loss.

Answer 8

The bank requires you to carry insurance to cover any damages to your car to protect them. They don't want you finding a cheap way of fixing your car that might lower the value of the vehicle. You might be able to convince them that the repairs are adequate, but you have no chance that they will give you that money up front without a guarentee that they will be protected.

Answer 9

Talk with the bank and maybe they will work with you. They want to insure they get thier monies.
Too late about the insurance going up the claim is done.

Answer 10

ITS BECAUSE YOU PROBABLY STILL OWE ON THE ORIGINAL AUTO LOAN?? ....YOU COULD PUT THE REPLACEMENT SEATS CHARGE ON A CREDIT ACCOUNT AND THEN IMMEDIATELY SECURE THE CHECK FROM THE BANK BY PRESENTING THE RECEIPT TO THE BANK ....DONT KNOW ANY OTHER WAY....BUT IT SEEMS THAT IF YOU ARE THE HOLDER OF AND PAYOR OF AN INSURANCE POLICY...YOU ALONE SHOULD RECEIVE THE CHECK......UNLESS YOU OWE THE BANK A BALANCE ON IT