I have the right to receive a claim payment directly, yes?

What is the name of your state? What is the name of your state? What is the name of your state? TN

Was in a minor fender bender, other party was at fault and is being taken care of by her policy. I was told to just take it where ever I wanted to get it fixed. The carrier is StateFarm, by the way. I got an estimate and faxed it in, and it turns out that the shop I chose is a "Service First" shop, which means that the shop can just bill SF directly....they handle everything basically.

However, the damage is so minor that I can live with it, or else get part of it fixed (on my own) at a later time. So I just want a check at this point.

I do have the right to request that a check be made out to me for the amount of the estimate, correct?

I received a message from the SF claims office, and it sounds like they'd prefer to bill the shop directly. Just wanted to make sure that it's "legit" to take a check at this point.....before I call them up and sound like an idiot.

Thanks in advance...

[racer72]

I do have the right to request that a check be made out to me for the amount of the estimate, correct?


No.

Why's that? Can you elaborate? I've heard otherwise...

Thanks for your time.

Originally posted by racer72
I do have the right to request that a check be made out to me for the amount of the estimate, correct?


No.

Is there a lienholder on the vehicle?

[racer72]

Due to the high rate of fraud in the insurance industry, many insurance companies are now paying the repair shops directly instead of paying the claimee. It also saves the insurance company money. Technically what you propose (pocketing the money instead of having your car repaired) is insurance fraud. There is no laws requiring insurance companies pay claimees directly, it is all a matter of company policy. Your other option is to work out a deal with the repair shop and see if they will give you some of the claim money instead of repairing your car. Don't be surprised if they say no, that is also a form of insurance fraud. It is a way for insurance companies to save money and hopefully lower rates for all of us.

Gotcha, thanks for the explanation. I was under the impression that I am owed compensation for the damage to my vehicle and subsequent loss of value.....and that whether or not I actually fix it is my prerogative. They did tell me at first that they'd just cut me a check when I faxed in an estimate from a non-Service First shop (if the estimate was "approved"), so that's what I was expecting. Then come to find out the place I got the estimate from IS a Service First shop, and now I hope they don't try to force the automatic billing deal. Thanks again for your input.

No lien on the vehicle, btw.

Originally posted by racer72
Due to the high rate of fraud in the insurance industry, many insurance companies are now paying the repair shops directly instead of paying the claimee. It also saves the insurance company money. Technically what you propose (pocketing the money instead of having your car repaired) is insurance fraud. There is no laws requiring insurance companies pay claimees directly, it is all a matter of company policy. Your other option is to work out a deal with the repair shop and see if they will give you some of the claim money instead of repairing your car. Don't be surprised if they say no, that is also a form of insurance fraud. It is a way for insurance companies to save money and hopefully lower rates for all of us.

[JETX]

For more on this, go to:
[url]http://info.insure.com/auto/claimpayment.html[/url]
[url]http://www.auto-insurance-quotes-plus.com/6-FAQ-answers.html[/url]

Excellent, exactly the type of info I was looking for. Thanks JETX.

Just a follow-up....

Got off the phone with StateFarm, I merely asked to recieve payment directly and he said he'd have a check on the way. No explanation needed, seemed simple enough. Thanks again..

[JETX]

Of course, you're welcome.

[xrevvyx]

I have a quick question/comment for the pro's and it might be something that the OP wants to take into consideration -

If your car was hit on the driver's side door (since I don't think you mentioned where your car was hit - I'll just use this as an example) - and it was just a minor dent/scratches maybe $500.00 worth of damages .. and the insurance company paid on the claim - then say 2 months or a year later someone else hits you in the same area and maybe this time the door needs to be replaced - couldn't the insurance company refuse to pay until you show proof that the original damage was fixed ??

I would think so - but then again if the new damage was significantly more than the original would the insurance company just know that it obviously had nothing to do with the first ??

[JETX]

"couldn't the insurance company refuse to pay until you show proof that the original damage was fixed ??"
*** I doubt they would refuse to pay, but would more likely deduct your current compensation to cover for the pre-existing damage. This is done quit often when there is evidence of previous damage (rust, etc.).