Car crash? Here's what happens next
Suppose one day you are driving to work and you have an accident. You are okay, but the car is a mess. What happens next?
Your insurance company is going to pay for repairs, but how they do it depends on what choices you make.
Many insurance companies encourage customers to work with one of their preferred "in-network" repair shops. If you go with this suggestion, you are unlikely to ever see an actual insurance check yourself, but you also will not be the middle-man between the insurance company and mechanic, according to Value Penguin. If the mechanic leaves town with the money, the insurance company will be left holding the bag, not you. On the other hand, if you go with your own guy and he leaves town with the money, you might have to personally pay for the necessary repairs.
If your wrecked car is financed, your insurance company will probably make out a check to you and the lender. The lender might make the payments for repairs on your behalf, or it might cash the check and let you do it.
On the other hand, if the crash is the fault of another driver, you may receive a settlement check from their insurance company. But, don't skimp on repairs and splurge on a Bahamas trip instead — the terms of your loan or leasing agreement may require you to fully repair the damage.
If the car is not financed or leased, you don't have to repair it. But remember, your insurance company is not going to pay for the same repairs twice if the problem occurs again or gets worse because you didn't fix it the first time.
