tippingpoint
Super Genius
- 109
Are insureds legally required to send their check to a repair shop for hail damage or can they keep the money and fix it themself if this just happens to be their trade?
Hail damage insurance check
- Thread starter tippingpoint
- Start date
- 2,263
They can always keep the monet unless there is a lien on the vehicle. It is a good way to start a fraud case however should there be another claim.
- Thread starter
- #3
tippingpoint
Super Genius
- 109
There is a lien and the insurance company is USAA. Will they even cut him a check? He's a pro he can fix it but if for whatever reason he puts it off for a while or just doesn't fix it, and gets in a wreck, it could be used as fraud?
Al3x Lee
Guru
- 952
If they have the necessary skills and equipment to perform the repairs themselves, and USAA agrees, they may be able to receive the payout for the cost of repairs and then perform the repairs on their own.
I recommend reading the insurance policy and speaking with USAA to understand the specific rights and obligations outlined within the policy. Insurance policies can vary, and the terms and conditions may dictate how the claims process works, including the choice of a repair shop and whether the customer can perform the repairs or if the customer can accept a payment in lieu of repairs. With hail damage, it is possible they may give the claimant a check and walk away if it is only cosmetic and does not affect the safety and operation of the vehicle.
If they choose to keep the money and perform the repairs themself, the insurance company may require them to provide evidence of the completed repairs to ensure that they were done correctly and that the damage was repaired to the necessary standards.
Pretty easy to avoid accusations of fraud if you're transparent with the insurer and the lienholder.
I recommend reading the insurance policy and speaking with USAA to understand the specific rights and obligations outlined within the policy. Insurance policies can vary, and the terms and conditions may dictate how the claims process works, including the choice of a repair shop and whether the customer can perform the repairs or if the customer can accept a payment in lieu of repairs. With hail damage, it is possible they may give the claimant a check and walk away if it is only cosmetic and does not affect the safety and operation of the vehicle.
If they choose to keep the money and perform the repairs themself, the insurance company may require them to provide evidence of the completed repairs to ensure that they were done correctly and that the damage was repaired to the necessary standards.
Pretty easy to avoid accusations of fraud if you're transparent with the insurer and the lienholder.
MIGA1626
Super Genius
- 222
Basically the answer is yet. But not good business practices for your insured for the above mentioned reasons.
- 24,978
Recent personal experience:
A couple of months ago someone backed into my parked car. Put their hitch through my plate and bummer.
The driver took responsibility. I got an estimate from a Geico shop. After finding out he had CA minimum coverage, $5,000 I decided to go through my company USAA.
Geico cut me two checks totaling the estimate. At that point I believe I could have done whatever I wanted. But I would have to eat anything discovered after. In my case i assume USAA will subrogate upto the $5,000 and my underinsured takes care of the rest.
A couple of months ago someone backed into my parked car. Put their hitch through my plate and bummer.
The driver took responsibility. I got an estimate from a Geico shop. After finding out he had CA minimum coverage, $5,000 I decided to go through my company USAA.
Geico cut me two checks totaling the estimate. At that point I believe I could have done whatever I wanted. But I would have to eat anything discovered after. In my case i assume USAA will subrogate upto the $5,000 and my underinsured takes care of the rest.
- 2,624
Not likely.
More likely that the claim rep will just reduce the payout by the amount of the previous claim.
Waste of time, effort, and money trying to allege and prove fraud in cases that just involve repairs not being made.
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