Am I wrong or right

[Chain Saw]

My wife was in a car accident a couple of weeks ago. She was stopped for a light. Lady in back of her decides to go before the light turns green. Very little damage to my wife's car. A small dent in the rear bumper. Damage estimate $1000.

Friend of ours goes to internet and says her car is worth $700. (its a 1988 Volvo).

I tell my wife that if the car is only worth $700, how much do you think it will be worth after you spend the $1000 insurance money to replace back bumper. I'm saying it'll be worth the same $700.

Take your $1000 and put in savings, spend it if you like, but don't waste it on the car.

We can do this right? We don't have an obligation to spend that money on the car, do we?

Insurance check is made out to her.

 

[kosar]

No obligation. Keep the money.

 

[toastonastick]

Keep the cash. I had a lady side swipe my sideview mirror off. I was quoted $2,000 to fix the mirror and respray the door for a scratch about a half inch long. I did not want to risk them matching the paint for such a small scratch. I went and bought the Mirror for $300 and kept the rest. It is not fraud by any means because you have still lost value in your car.

 

[Master Capper]

keep the cash and put it towards your next auto purchase, if the roles were reversed and say you owed $3000 on a auto and it was worth $2000 (blue book value), and the car was totalled, the insurer more thanlikely is going to only give you 2k so you would be stuck for 1k. Sometimes insurers especially in the P&C market will make the check out to Yourself/Jones Roofing if you have damages to stop someone from not repairing the loss and pockieting the cash/

 

[THE HITMAN]

As Kosar noted, you are under no obligation to do anything with the cash. It is even tax free. The last thing I would do in your position is spend it on the car.........In essence, someone just bought your car for $1000, dented the bumper and then gave it back to you for free. It's like free money or a free Volvo, take your choice.
I'd put it in the bank...............or make a deal with the wife. She gets $500 to go shopping with for whatever she pleases and you get $500 to fund your favorite Madjack's book with a 10 or 20% bonus.

 

[Agent 0659]

What makes you guys think you are qualified to give advice on this? Do you know for sure the law? And also the law in his State? Be careful what you are advising people on.

 

[Master Capper]

Don't know the law of Alabama (assumption of where Chain Saw resides), but the laws of Ohio are what I am basing my ideas on. Since, I am going on the belief that his spouse collected from the insurance company of the other at fault party and not her own, by cashing the check she is acknowledging that she no longer holds them responsible for the damage to the car and that she is satisfied with the awarded figure. Most insurers would be grateful if all parties were like his wife and were not holding out for personal injuries and willing to settle for such a small figure. If on the other hand the check was made out to Mrs. Chainsaw and Beantownjims Autobody then either she would have to get the car repaired or work out a deal with the autobody shop.

 

[toastonastick]

with no lien holder on the car, you are entitled to spend that money any way you choose.

 

[Chain Saw]

Thanks everybody. Check was made out to my wife. Would suspect the laws in Alabama(although we have some really stupid ones on the books) would be the same in this area as the rest of the country. Will call my insurance agent to be on the safe side.

Hitman, I like your explanation. I'll give that one a shot.

 

[yyz]

In Wisky, they try to do the ol huck-n-buck on ya! They will make the check out to you and the auto shop, to avoid any hanky panky.

I had to go round and round once about getting a check made out just in my name. I could not believe I had to go through hoops with these clowns!

They are NOT paying you to repair the car, they are paying you for your loss!

 

[BahamaMama]

my 2 cents .... like toast and others have said... as long as noone holds a lien, the check is a *do what you want* with it... if you already have the check in hand, the other part of my explanation is a moot point...LOL, but i'll tell ya anyway

many times if the accident is YOUR fault, and it is YOUR insurance company paying for it, you don't have a choice as far as pocketing or repairing (as they are allowed to make it out to both you and the body shop) .. car with no lien and another persons insurance company paying for it, the check is made out to you alone, and 100% your choice.

the part of what you say that surprises me is that blue book on the car is only $700 and they are giving you $1000. usually when this is the case, the consider the car totaled, they give you the value of the car, and THEY get the car. good to hear you already have the damage check

 

[Agent 0659]

Mama your answer is right on.