Reader’s Question:

Does they have to fix it if they file a claim on the fender bender or can the individual keep the money?

Gerald

Thank you for asking Gerald.

If you own the car and do not have a lien holder you may be able to keep the money and not make the repair depending upon your state’s laws. According to the ND Insurance Department site, the North Dakota Department of Insurance states that the policy provisions for loss settlement will dictate the basis a company will use to settle a claim.

In addition to the, the ND Insurance Department goes on to say that : most policies currently do not include a provision for a cash settlement. In these situations, the company is obligated to settle (pay) based upon the cost of repair. Some policies, however, may go further and allow the company to negotiate a cash settlement. If they do, it is reasonable for the company to deduct labor, overhead costs and sales tax if you are not going to repair the vehicle (according to ND laws, other states may differ).

You may check with the ND insurance department to get more information regarding cash settlements instead of a check to the repair shop for the damages to your vehicle to be fixed.

Goodluck!

MariCAR