When making claim under the collision coverage section, policies do not specify whether or not you have to have your car repaired, or to whom the claim check is to be written.  Policies will state that they do not have conditions of payment for damages on repair of your vehicle. Also, they cannot require you to use a specific auto body shop if you decide to have your car repaired. The insurance company can require an inspection either by a repair shop or by an adjuster and a repair estimate to be written, so they have basis on which to base their payment to you. But, unless the policy states otherwise, you can pocket the money and live with the damage.

For example, if you don’t plan on selling your car, but plan to drive it into the “ground,” and the damage isn’t too unsightly and you can definitely put up with, then why not keep the money? But if you are planning to sell or trade the vehicle, you are better to let a qualified body shop do the actual repairs.

If the damage was deemed a “total loss,” meaning it would cost more to repair it than to replace it, you have the option to keep the salvage. By law, you would have to file with the Motor Vehicle Department that you vehicle is “salvage” status. The insurance company will deduct the salvage value from their payment to you if you do so. You could sell the salvage yourself and keep the money. Some people take the settlement money and repair the car. Because of the salvage status notated on your title it will be difficult to trade or sell, and I strongly advise against it. It is better to give the salvage to the insurance company, get all the money you can from them for the actual cash value of the car, and then use that as a down payment on another vehicle.

For a quick, no obligation quote on your auto and homeowners insurance needs, call Doug Seide at 480-443-1952.