Reader’s Question:

Can I keep the check my auto insurance provider gave me to cover repairs done on my vehicle here in Alabama?

Jonas

Decatur, AL

It is perfectly legal for you to keep the check given by your auto insurance provider there in Alabama, even if its purpose is to have the damages to your car repaired. However, if you have an outstanding equity loan on your vehicle this is not advisable. Your auto insurance provider might consider this a breach in your agreement and they will have all the right to either reduce the amount of coverage on your insured vehicle, or terminate your auto insurance policy all together. Also, some auto insurance providers would issue the check directly to the body or repair shop where your car was brought in to be fixed, if your car is on equity or on loan.

Even though there is no law against keeping the check, you do want to make sure you get the damages on your vehicle repaired. It would be very unwise to get that vehicle into another accident or collision since your auto insurance provider would have reduced your coverage (for not using the check issued to get the car fixed properly). This might also complicate filing additional auto insurance claims in the future since it will be very hard for the claims adjuster to determine which damages were from the actual collision, and which damages were caused by the prior accident where you kept the check. It is highly recommended to use that check you got for its original intent.

Tags: advice, auto insurance, auto insurance claims, auto insurance policy, car