When I sign proof of loss for Insurance Co. because of damages, why do i recieve a cheque in return?

Answer 1

"An auto insurance company's decision to declare a car a total loss is based on two factors:

1. The value of the car
2. The amount it would cost to repair the covered damage

Basically, if the cost of repairs exceeds the car's value, the insurance company will declare your car totaled and give you a cash settlement rather than pay for the repairs. So a relatively minor accident could be enough to total an older or inexpensive car, while a very serious accident may not cause a more expensive model to be totaled.

Remember, the check you receive from your insurer is for the actual cash value of the vehicle, which may not match the cost of a similar car in the real world. If you think the settlement amount your insurer offers you is too low, but you don't want to go to the trouble of having the damaged vehicle repaired, you may be able to negotiate a higher settlement. To do this, you'll need to bring in an independent appraiser (probably at your own expense). If this appraisal is significantly more than the insurer's internal appraisal, the insurer may agree to increase your settlement."

Answer 2

It's basically a voucher. Proof of loss forms are not used that much anymore. You just sign it and send it in and you get your check. How else did you plan to get paid for your damages?

Answer 3

Was the car totaled?

If it was, it's because your car was worth more than you owed on your bank loan.

they paid the bank their share, and you get the equity above the vehicle's value.

If the car wasn't a total loss I don't know why you got a check.

Answer 4

Couple of choices.

1. Ask the insurance company, and get the right answer
2. Ask us, we will make something up for you.

Answer 5

they dont send cash in the mail