Claim payout

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Apr 1, 2014

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Insurance Question from Lompoc, CA

Asked on 04/01/2014

Claim payout Can you take the claim payout and not repair your car if you were hit by a drunk driver damage was done but you would rather have the money?

Answer given on April 02, 2014

If you are involved in an auto accident where you were struck by the other party, then the other insurance company will make a settlement with you for the damages.Usually the insurance company will make the check payable to you and the repair facility you choose, or directly to the repair facility. However, if they make the check payable to you, you can use the money as you see fit.If you do not repair your car, then you will have an issue if you have another accident. If you carry collision coverage on your car, and the accident is your fault, your insurance company may deny coverage. If you are carrying collision coverage and do not repair your car from this accident, it is recommended that you drop collision coverage. Save the money since future claims will be denied.If someone else causes damage to your car in a future accident, the insurance company will either deny coverage for damages to your car or will greatly reduce any settlement since previous damage was not repaired.You need to decide if you are willing to take a chance on no settlement for future damage. All of the above issues are presuming there is no loan on your car.


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