What to do if I was in car accident but the insurer wants the settlement check back?

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What to do if I was in car accident but the insurer wants the settlement check back?

The party that hit me insurance company sent me a check to pay for my automobile damages. After my car got to the bodyshop they informed me that it was a total loss. It took a while for the insurance company to let me know anything, so I cashed the check to put a down payment on another car (I was in a very bad situation with needing a car to get back and forth to work since my job consists of 90% travel). Shortly after that they contacted my lienholder to negotiate a payoff amount. They then contacted me asking for the check back to go towards the payoff amount. Should I tell them I spent the money?

Asked on October 4, 2013 under Accident Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

I suggest that you come clean with the insurance carrier that paid you the check telling its representative that you cashed the check where the lien holder on the vehicle did not get paid off. From there you need to try and work out the situation with the lien holder and the carrier.


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