Some motorists may have different ideas about how repairs are carried out and they may want to receive a settlement into their banks. However, it may not be a straightforward request and it may be refused under certain circumstances. It may seem like a simple favor but there are various implications depending the on the size of damages, intentions and legal requirements. This post will explain logic behind each expected decision.
For example, people may know a qualified mechanic who does not have an approved garage. They may be confident that it will be repaired up to a good standard and they can have a good cash deal. It may make sense to get it done as cheaply as possible, especially if it is an older automobile. Nevertheless, auto insurance companies would have their reasons for refusing to pay a policyholder directly.
They may not argue for small claims and just send the checks out to customers. They actually like to go ahead and do this because they don’t want to waste time and money on checking repairs and body shops. Anything above $2000 would make it harder and car insurers can refuse to pay directly to policyholders for works to be carried out. They would most likely prefer to settle with body shops on confirmation that it is done.
There are at least couple of reasons to think of why they would choose this option. The first one is that you may have a lien-holder listed on a policy. If an auto loan lender has an interest on a car (because they lend money to buy it) they would want to make sure that it is fixed in cases of accidents. So, they would not be happy if money is handed over without ensuring that the work is actually complete. The only way they may be happy to send you a check in this case is that if you get consent from the lender that it is acceptable for them. Good luck getting that confirmation.
Also, they may only do so by issuing a check that is made out to you and the lender jointly. One of you has to sign it over to another. Again, good luck getting it signed over to you if you don’t confirm that the vehicle is made good again and it is done competently. So, all you may achieve is further delays.
Another reason would be that they have an interest in the safety of cars they insure. After they settle with you for the claim they are likely to carry on covering the automobile. Therefore, many companies may choose not to send any money to personal bank accounts for claims over $2,000. They don’t want customers to be driving not roadworthy automobiles, which may cause accidents.
In most cases, you can choose a body shop you want and companies will agree to it and deal with invoices raised. Some of them may not see the fuss about who gets paid as long as the work is done. And they may want a plausible explanation from you as to why you are keen to get your hands on it first. They get uneasy when people ask something out of the ordinary. They don’t want to be the ones who are facilitating you to do something that is not acceptable or legal.
Furthermore, there may be laws that require vehicle insurers to be extra careful as to who gets compensated and they are real people. That is why they may have to see proofs of identities. But they may not be required to do so when they are clearly sending funds for the damages and to a pre-authorised vendor. In addition, most of them would be more comfortable with this option because they don’t need to worry about any funny business going on in the background.