Can my auto insurance company refuse to pay me cash for damages?

Can my auto insurance company refuse to pay me cash for damages?

I was hit by an uninsured driver, and my insurance company covers me for up to $3500 in damages, but they want me to take my car in and they'-ll reimburse the mechanic. Is it possible to just get the cash and pay for it myself?


It is normally stipulated in the policy that they can nominate the repairer and get the work done where they wish. They do this to keep costs down by using certain approved repairers only. I am afraid they can do this if they wish.


If the vehicle has a lien holder (if you're making payments on it), they have a legal obligation to protect the financial interest of that lien holder, therefore they cannot pay you directly. If you insist on a cash payout, you will have to have the lien holder sign off on the check (they will be listed as a second party on the payment) before you put it in your bank. The reason why the insurance offered to just pay the body shop directly is because legally they can do that instead of adding the lien holder as a second payee. Insurance companies know that getting a lien holder to sign off on a payment can be a hassle for you, not to mention take a lot of time.


It sounds like what you are talking about is California Uninsured Motorist Property Damage. The rules may be different for that. If you were accessing Collision coverage or the other party's liability coverage, I know you could just collect and pocket the cost of repairs, but don't know if that applies in this case.Honestly, the best way is to ask your adjuster.This is actually helpful, although many people think they won't get the damages if they mention this as an option. If you ask your adjuster if there is a way you can just accept payment for the damages without repairing, you will actually be making it clear what you would prefer to do, rather than hinting, or skirting around the issue.As I said, with the other coverages, pocketing the cash is definitely an option (you are owed for the incurred damages, whether you repair them or not), but it has been a number of years since I have handled a CA UMPD claim, so ask the person who is handling yours.Source(s):Claims adjuster



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