Can I Accept and Deposit an Insurance Settlement Check for Collision Damage to My Car?

Q. Can you accept and deposit a check for collision damage from your own insurance company?

If your car was damaged and you filed a claim with your own insurance company for collision damage, you can deposit the check from your insurance company.

It is not a settlement when you receive a check from your own insurance company for collision damage. If your body shop later finds additional damage, your insurance company will pay to repair the additional damage.

Q. Can you accept and deposit a check for collision damage from someone else’s insurance company?

If you receive a check from someone else’s insurance company for collision damage or anything else, it is a final settlement and you will not be able to get more money later.

If you are represented by a lawyer for your injury, do not file a claim against someone else’s insurance company for collision damage, and never sign a release without speaking to your lawyer.

If you were injured and do not have a lawyer yet, do not sign a release and call a personal injury lawyer immediately.

If you were not injured, you can sign a release that only releases claims for property damage and not bodily injury.

If you were not injured, and the accident was the fault of another driver, you can file a claim with the other car’s insurance company for collision damage, but you must be very careful.

If the other driver’s insurance company offers to pay you for the damage to your car, their insurance company may require you to sign a release before they send you a check. You should have the release reviewed by a lawyer. Never sign a release unless it states, “This release does not release any claims for personal injury.”

Should You File a Claim With the Other Driver’s Insurance?

If you only had minor damage to your car without an injury, you might not have a personal injury lawyer and may wonder if you should sue the other driver or use your own insurance.

If you file a lawsuit against the other driver, that driver’s insurance company will require you to sign a release before they will issue a settlement check to you. The release will prevent you from getting more money if you find further damage to your car. Body shops frequently find more damage after they begin working on your car. Never sign a release that includes injuries.

If you have collision damage coverage, your insurance company will not require you to sign a release. We always recommend using your own collision damage coverage.

Can I Negotiate With the Other Driver’s Insurance?

There are two times you may consider filing a claim for property damage or collision damage with the other driver’s insurance company:

1. You did not have collision damage coverage on your insurance policy.
2. You have collision damage coverage on your insurance policy, but the other driver was 100% at fault, and you don’t want to make a claim on your own insurance policy.

When You Did Not Have Collision Coverage

If you did not have collision damage coverage on your insurance policy, you have no choice but to settle with the other driver’s insurance company if you want to get reimbursed for the damage. But find out below what you need to do.

Should I Sign a Release for Collision Damage?

Insurance companies in New York do not always require you to sign a release for collision damage. If you are not asked to sign a release for collision damage, you can accept a check as payment for the damage to your car and deposit the check without a problem.

If you do not sign a release, you can submit proof of additional damage if your body shop finds additional damage and receive more money to repair your car.

If you signed a property damage release, you will not be able to get more money if your body shop finds additional damage after starting work on your car.

The Release Must Be for Property Damage Only

If the other driver’s insurance company wants you to sign a release, you must make sure that the release states it is for property damage only. If the release is a general release, it will include injuries and prevent you from filing a claim for injuries.

It’s best not to sign a property damage release without having it reviewed by an attorney. If you already retained a personal injury lawyer, do not sign a property damage release without the knowledge of your lawyer.

If you were injured and have not yet retained a personal injury lawyer, call us for a free consultation, and we will be happy to discuss the release and review it with you for free.

When You Were Injured, But the Other Driver Was 100% at Fault, and You Don’t Want to File a Claim against Your Insurance Company

If you were injured in New York and have collision coverage, it’s best to go through your collision coverage. The claim will likely have no effect on your insurance premium because you will also have a no-fault claim against your insurance policy.

If you still don’t want to use your collision coverage and you will get 100% of the damage paid by the other car’s insurance, you can settle the collision damage claim against the other driver’s insurance. But if the other driver’s insurance company wants you to sign a release, make sure to have your personal injury lawyer review the release.

Tip: Ask your personal injury lawyer to take care of your collision damage claim against the other driver’s insurance because if you do it, the insurance company will get a statement from you. See why you should not give a statement to the insurance company.

Beware of Signing a General Release

We represented a client for injuries who thought she was signing a release to settle the collision damage claim on her car. The woman represented herself for damage to her car, signed a general release, and received a check for the damage to her car.

Later, when her injury started getting worse, she called us to represent her, for her injury.

When we sent a claim letter to the insurance company, the insurance company denied our claim for her injury because she already signed a general release for property damage and injuries.

We claimed the insurance company committed fraud and successfully had the release voided.

Don’t let the insurance company trick you into signing a release. Call us for a free consultation.

Why Should I Use My Collision Coverage Instead of Filing a Claim with the Other Drivers Insurance?

You have a number of benefits when you file a collision damage claim with your own insurance company. Your insurance company has legal and contractual obligations to you. Someone else’s insurance company does not have any contractual obligations to you.

When you file a collision damage claim with your insurance company, the insurance company has an obligation to quickly inspect your car and pay the money to repair your car. Someone else’s insurance company can take their sweet time while you’re getting impatient.

Can I Keep the Money from the Insurance Company, or Do I have To Repair or Fix My Car?

You have no obligation to fix or repair your car when you get paid either from your own collision damage coverage or another driver’s insurance policy.

The money is to reimburse you for the loss you sustained, which is the diminished value of your car. You can do whatever you want with the money. If you sell your car to someone else and did not fix your car, it is now worth less than it was before the accident.

However, you should take photos of the damage and make sure you can document exactly what was damaged in case your car is in another accident and additional damage is caused. You will only be able to recover money for the additional damage.

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