Check from car insurance claim- what would you do?

[Barbers2005]

Two days ago my neighbors backed out of their driveway and into my car, scraping off a bunch of paint. Well, today I got the estimate from their insurance company- $1200. So, being the frugal person I am, I started thinking maybe I should use the money to pay down the remaining balance on the car loan, thus eliminating a bill each month. So, what do you all think, is driving an ugly car worth having one less source of debt?

 

[Traveliz]

Depends how old the car is and how bad it is - we have done that before - but I don't mind a car with a few imperfections - -an older car that is.

Now if it were our new car then no I would have it fixed.

Liz

 

[UTgirl]

I guess that all depends on how bad it is and how much it bother's you. The other thing to consider it how long do you plan on keeping this card and what effect not fixing it will have on your trading it in or selling it. It may come back to bite you in the butt so to speak.

hhhmmmm tough call

 

[zalansky]

Maybe you could find a shop that will repair the car for less than $1200 and use whatever you have left over to pay down the balance? I know people who have done that.

 

[Frantasmic]

Another issue you need to consider is how likely that car is
to get into either another accident or a storm, i.e., hail
damage.

Any future damage to your car will be looked at carefully
by an adjuster. Say you have a hail storm next year and
it causes $1000 worth of damage. The insurance may deduct
part of what they paid you for the paint damage if it is
in the same area as the hail damage. So, you run the risk
of not having future damage claims paid in full or at least
enough to pass what you probably would consider too ugly
to drive.

 

[HM]

Back when I was a kid, a car backed into my Dad's car. Both cars had damage and we fixed ours. The other person let their's go. In two years, where the paint had been scraped off..they now had a rusted out fender. I'd fix it if I were you. Look around for the best deal and use whatever you have left toward your car payment.

 

[Barbers2005]

Well, it's a 2002, but we keep our cars until they just don't run anymore, so I will probably have it for another 8-10 years. Not really expecting much of a trade in when I get a new one. The bumper is polymer, so I know there's no chance of rust there, but I will have to check the side panel (not sure off the top of my head what it's made of). It's a bummer b/c we only got the car 6 months ago. I've been weighing no car payments against a nice looking car and I just can't decide which I'd rather have.

 

[daughtersrus]

Since you have a loan on the car, you may be obligated to repair it. You would need to check the wording in the loan as well as whom the check was made out to. Often times an insurance company will issue the check to the lien holder as well as the person that is paying for the car.

When our car was damaged, the check had "Ford Motor Credit" as well as our names.

State Farm issued our checks for repairs we had to our home for hail damage to Wells Fargo as well as our names. We had to jump through some hoops to get those checks endorsed by Wells before we could deposit them and pay the contractor.

 

[disneysteve]

Back when I was a kid, a car backed into my Dad's car. Both cars had damage and we fixed ours. The other person let their's go. In two years, where the paint had been scraped off..they now had a rusted out fender.

Not sure how old you are, but cars today really don't rust very easily. My 73 Chevy was little more than rust and duct tape by the time I we got rid of it, but today the cars are made of galvanized metal and even if you scrape off all the paint, they just don't rust. My 98 Camry has a variety of nicks and dings collected over the years but not a spot of rust to be found.

 

[XYSRUS]

Keep the money...Paint is not worth 1200.

 

[mlwear]

A few months ago my mom backed into another car while leaving church. The lady at first didn't want to file with insurance because it was really an old junkie car. Mom felt bad and offered to pay for the repair OOP. The lady first rejected, but then decided she should file a claim. Mom was not upset about this, in fact she was so relieved because she felt so badly every time she saw the dented car. (Mom is like that.) The lady ended up getting a settlement check for $1000+. Mom was so glad as she would no longer have to see the dent. As soon as the lady got the check, she told mom that she decided to keep the $ and let it go w/o repair. Mom wasn't exactly mad, but disappointed and she still has to see the dent every time she goes to church.
Really, what your neighbor thinks doesn't matter. What you do with the $ is up to you. But, I just wonder how they will feel when a claim was filed against their ins. and you didn't get the repair. Everyone is different. They may not care. Just a thought.

 

[sskem96]

My 2002 Dodge Grand Caravan got hit by the door of another van as a lady was getting out. It caused over $2,000 in damage and it started to rust within 2 weeks. We had to get it fixed ASAP because the sliding door was totally unusable-the handle split in half, but it took a while to get the approval from State Farm because the damage looked so bad that they questioned how it had happened. Luckily I had my camera with me and took pictures at the scene while her door was imbedded into mine.

 

[tinatark]

You need to talk to your lender. They may let you use the check to pay down the loan instead of repairing the car. The check should be payable to you (owner) and the lienholder jointly.

 

[TiggerStac]

In MA...there is a form that needs to be sent in when you get your car repaired, if you do not repair it, they deduct the amount of the check from the value of your car. So if something was to happen to your car and it was totaled...you would get $x less.

My parents own an autobody (I am a shareholder in it)...and we are always the last to get cars fixed. I was rear ended on 10/30 and had an actual scheduled appt in December to have my car fixed...you guessed it, I was bumped. Now they were going to take it while I couldn't drive for 2 weeks, after having my csection on Thursday...well...we have had a lot of ice around here in the last week/2 and they are packed. So, I'm going to WDW 3/27 and it will be fixed then!!! The damage isn't really noticeable and is to my plastic bumper, so I'm fine w/it. My mom drove around w/her car primed for probably 3 years. They finally painted it when they were going to sell it... maybe I need to find a new repair shop

 

[Toby'sFriend]

well I'd pay off the car if I could live with looking at the damage.

In fact, we did do that once with an old Saturn (plastic bumper) that got all scratched up. Somebody on the DIS tried to tell me that I broke all sorts of laws by using the insurance money for anything other than fixing the car --

I don't know about that. I know the finance company took the money just fine and nobody ever showed up at the door to arrest us.

 

[poohs_hunny]

My 2002 Dodge Grand Caravan got hit by the door of another van as a lady was getting out. It caused over $2,000 in damage and it started to rust within 2 weeks. We had to get it fixed ASAP because the sliding door was totally unusable-the handle split in half, but it took a while to get the approval from State Farm because the damage looked so bad that they questioned how it had happened. Luckily I had my camera with me and took pictures at the scene while her door was imbedded into mine.

How hard did she open her door??

 

[seashoreCM]

Somebody on the DIS tried to tell me that I broke all sorts of laws by using the insurance money for anything other than fixing the car --

I don't know about that. .

He's dead wrong unless your car insurance contract says you have to fix the car.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[Not so Dumbo]

A few months ago my mom backed into another car while leaving church. The lady at first didn't want to file with insurance because it was really an old junkie car. Mom felt bad and offered to pay for the repair OOP. The lady first rejected, but then decided she should file a claim. Mom was not upset about this, in fact she was so relieved because she felt so badly every time she saw the dented car. (Mom is like that.) The lady ended up getting a settlement check for $1000+. Mom was so glad as she would no longer have to see the dent. As soon as the lady got the check, she told mom that she decided to keep the $ and let it go w/o repair. Mom wasn't exactly mad, but disappointed and she still has to see the dent every time she goes to church.
Really, what your neighbor thinks doesn't matter. What you do with the $ is up to you. But, I just wonder how they will feel when a claim was filed against their ins. and you didn't get the repair. Everyone is different. They may not care. Just a thought.

That was kind of my thought too. I know it wouldn't sit well with me if I was the neighbor.

 

[dodukes]

Technically I have to agree, I dont think its illegal or anything to take the money and do something else with it becuase the damage is there. I would just fix my car, but then i like to do everything possible for my cars, cant stand the thought if i had the money to not fix it. Unfortunately I have a bit of shingle damage, scratches on my car that i got in the 04 hurricanes after only haveing the car for like a year, i didtn file a claim or anything but i HATE to see them everytime i pass that side of the car or wheni am washing it.

 

[IDoDis]

He's dead wrong unless your car insurance contract says you have to fix the car.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

If you don't use the money to fix the car, you would legally have to report it as income on your federal taxes. So, he's not totally wrong. The only way you would be found out, was if your neighbor reported you. Doubtful that would happen.

If I hit a friend or neighbor's car and they chose to keep the money, it wouldn't bother me. That's their choice and a payment for having to look at the damage every day.