What do I do with a check made out to me and my car lien holder from an accident I had if I do not have the money for my deductible?

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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: Oct 9, 2012

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Insurance Question from Cordova, TN

Asked on 10/09/2012

What do I do with a check made out to me and my car lien holder from an accident I had if I do not have the money for my deductible? Will my lien holder accept this as payment towards my vehicle. Just because I don't have the money for the deductible to get my car fixed at this time, I would still like to have some use out of the check like applying it to my balance of the vehicle. What do you think?

Answer given on November 05, 2012

If you had an auto accident and received a settlement payment from an insurance company, you have two options. If the car was considered to be repairable, then you can check with multiple repair places. You may be able to find a place that car repair the car for a lower amount then the settlement check from the insurance company. That way, you may be able to avoid the deductible. Also, you may have payment for damage to a wheel and you don’t have to replace the wheel, you can use that extra money to cover the deductible.If the car is considered a total loss, then the insurance payment should be used to pay the balance due on the car. Hopefully you have had the car long enough to have the settlement check cover the amount of the loan or lease balance. If so, you can sign the check over to the lien holder. While you may not have any extra money, you will have paid off the loan and may be able to find another car with no money down. If the car is totaled, you do not have to repair the car, simply pay off the loan.

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