Do You Get the Remainder Balance From a Insurance Check After Fixing Your Car From an Accident?
- In most cases, your insurance company will issue payment directly to the repair shop. In some cases, you may choose the repair shop and provide the contact information to your insurance adjuster. In other cases, the insurance company may offer to select a repair shop for you. When the insurance company pays the repair shop directly, you do not receive any amount left over after the repairs are complete.
- An insurance company may issue a check directly to you for the repair of your vehicle, although this practice is no longer common in the auto insurance industry. If the company pays you directly for the amount it deems necessary to repair your vehicle, you are free to choose any repair shop, and to opt for used parts or substandard repair techniques to minimize repair costs. In this case, the insurance company may allow you to keep the amount left over after you have paid for the repairs.
- Physical damage coverage typically comes with a deductible, which is the portion of the damages that your insurance company expects you to pay for out of your own pocket after an automobile accident. If the insurance company pays the service provider, it will subtract your deductible from the repair shop's payment. The repair shop will then collect the deductible from you. If the insurance company pays you, it will subtract your deductible from the amount it deems sufficient to repair your car. This reduces the chance that there will be anything left over after the service provider has completed repairs.
- Choosing used parts and substandard techniques for your vehicle repairs may save you money in the short term; but it can lower the value of your vehicle, which may cost you when it is time to trade your car in for a new one. It may also decrease the safety of your vehicle, and may lead to more repairs later on.
