you can pocket the check.

unless you staged the accident, or are claiming damage that was already there before the accident, in which case insurance fraud has already been committed.

You can pocket the check. The insurance company is making you whole, whether that be by paying to have the damage fixed, or by compensating you for the drop in your car's value caused by the (unrepaired) damage. EDIT - the insurance company doesn't explicitly pay you for this drop in value - but by cutting the check to you they're basically making the decision yours.

I got backed into last year, got the check for the damage and cashed it but I've yet to get it fixed.

Thanks guys, that's what I thought, but wanted to see what others had to say.

If you currently have a loan on the car, you may have to fix it. Read the loan agreement, it probably states this. If you own it outright, you can do whatever you want.

This.

To the OP: If you are leasing, it almost certainly requires this. Less common with a loan, but, still frequently a provision in the agreement. The car is the collateral on the loan and the loan company may require repairs.

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If there are no dogs in Heaven, then when I die I want to go where they went. - Will Rogers

Emery's Third Coast Triathlon | Tri Wisconsin Triathlon Team | Push Endurance | GLWR

Thanks, yes I own the car outright.

These are good points.. my car is paid off so this didn't even cross my mind.

This same issue was presented by the accountant seat holder in my business networking meeting last week. They made the point that you can cash the check, but expect to be taxed on any amount not used for the purpose in which the check was issued.

If he had a loan the check would've also been made out to the loan company which would prevent him from just cashing it.

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I miss YaHey

How would the IRS know? Would the Insurance company file some type of I-9/W-2 Style form?

Yes, anything over $600 I believe is what the accountant said. This accountant had a few clients who have ended up with insurance settlement checks and had decided "oh, let's take a cruise" instead of "I really need to replace that roof".

We have had hail damage the last two years. Well over 30k for one claim and 10-15k for another and never received anything and we cashed a lot of the checks and then just paid the money to the contractor. So there must be more to it than this.

Not true. The insurance company contracts with the owner, not the loaning company.

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If there are no dogs in Heaven, then when I die I want to go where they went. - Will Rogers

Emery's Third Coast Triathlon | Tri Wisconsin Triathlon Team | Push Endurance | GLWR

Every car loan I've had has them listed as a "loss payee" on my insurance policy.

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I miss YaHey

Exactly. They will be considered a lienholder on the car and their name will be included on the check.

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"Honestly, triathlon is a pussified version of duathlon on that final run."- Desert Dude

 
Did that a few years ago with my wife's car. Kid's foot slipped off the clutch and he bumped her at a stoplight. But a little ding in the rear bumper cover. Because it is plastic there is no fixing it, has to be repainted and all. Total came to $500 to fix it. I can see the ding cause I know where it is, otherwise it is hard to pick out so we pocketed the money.

Never had it. Never seen it. I got a check once, wifie got one once, and my son got one once. All 3 vehicles had loans. All 3 checks paid directly to us.

I've had USAA and State Farm. Never listed any loan companies on any policy.

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If there are no dogs in Heaven, then when I die I want to go where they went. - Will Rogers

Emery's Third Coast Triathlon | Tri Wisconsin Triathlon Team | Push Endurance | GLWR