Money from an insurance claim

[artoodetoo]

What is the name of your state? MN

My car received hail damage a number of years ago and the money given by the insurance company was used for something other than repairing my car. My friend just told me that because of this it is illegal for me to have anyhting more than liabilty insurance because they can't tell which damage is new. Is there truth to this?

P.S. Right now I have total/full coverage

 

[Bigfoot]

I've never heard this before. Contact the consumer division of your state's department of insurance for a confidential reply.

 

[HomeGuru]

What is the name of your state? MN

My car received hail damage a number of years ago and the money given by the insurance company was used for something other than repairing my car. My friend just told me that because of this it is illegal for me to have anyhting more than liabilty insurance because they can't tell which damage is new. Is there truth to this?

P.S. Right now I have total/full coverage

**A: if it were true, then why would your insurance company fully insure you?

 

[knotcops]

Not true. The insurance company would simply document the existing damage before insuring the vehicle.