If I received a small check from my insurer for damage to my car’s fender, can I use that claim check to pay down my loan?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I received a small check from my insurer for damage to my car’s fender, can I use that claim check to pay down my loan?
My lienholder is on the check. I could likely get the repair’s made (at a later date) for less than the check.
Asked on December 30, 2014 under Accident Law, Connecticut
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Yes, as a general matter, you may may use a check from an insurer for other than repairs. However, the lienholder is on the check, you should check with them whether they expect you to use the check for repairs or whether they would have no objection to you using it to pay down the loan. Assuming the latter, you could use the check as you indicate.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.