# "Creative" Auto Insurance Claim **URL:** \ **Category:** In My Humble Opinion\ **Created:** [May 16, 2014, 3:16pm UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588 "2014-05-16T15:16:00Z")\ **Posts on this page:** 5\ **Page:** 2
**Author:** ![RandMcnally](https://avatars.discourse-cdn.com/v4/letter/r/b782af/32.png) [@RandMcnally](https://boards.straightdope.com/u/RandMcnally)\ **Post date:** [May 19, 2014, 2:18pm UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588/21 "2014-05-19T14:18:38Z")
> [@What\_the](#): > > Thanks for all of the info everyone…I contacted my agent to see what my options are now. I’ll report back. > > I’m interested in what would happen if the car was damaged later in the same area. If I got the car fixed, they’d pay the claim. Why would it be dif if I didn’t? > > I can understand if the damage was less extensive the second time though. Seems like it would be difficult to tell…in fact, I think that this exact scenario was an example of why I was originally told that I had to get it fixed. There are way too many different ways it could go for me to be confident in my answer. One aspect: insurance companies are obligated to repair your vehicle to pre-loss conditions. No more, no better. If your vehicle isn’t worse because of the accident they may not pay anything. It’d be like you got in a car accident but your vehicle wasn’t damaged. Another way to handle it would be to take the unrelated prior damage out of the amount you’re paid. If, let’s say, the prior damage is $300 out of the thousand quoted, you may be cut a check for $700. As for DV, usually it isn’t a first party coverage. You’d have to claim that on the other party’s insurance. Each insurance company has their own policy for such. It isn’t enough to just say, “my car is worth less now. Pay me.” You’d have to be able to show exactly how diminished your vehicle’s worth is because of the loss. ---
**Author:** ![Doctor\_Jackson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/doctor_jackson/32/32_2.png) [@Doctor\_Jackson](https://boards.straightdope.com/u/Doctor_Jackson)\ **Post date:** [May 19, 2014, 2:18pm UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588/22 "2014-05-19T14:18:56Z")
In Georgia, at least, one does not need specifc DV coverage: > [@](#): > > In 2001, the Supreme Court of Georgia held that insurance companies are required to pay DV claims. (See State Farm Mutual Automobile Insurance Co. v. Mabry, 274 Ga. 498, 556 S.E.2d 114 (Ga. 2001)). DV claims are based on the reality that vehicles are worth far less after they are damaged in collisions—even after repairs are made. Most prospective buyers, whether they are dealerships or individuals, will not buy a wrecked and repaired vehicle. If they were to even consider purchasing it, they would demand a substantial discount. Like refurbished electronics, DV is a simple concept that EVERY judge and juror can understand. This makes sense, since the purpose of insurance is to make one whole after an accident, and accounting for diminished value due to the accident is as much a part of making one whole as the damage itself. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [May 20, 2014, 11:26am UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588/23 "2014-05-20T11:26:54Z")
> [@Rachellelogram](#): > > Who wrote you the check? Your insurance company, the other driver’s insurance company, or the other guy directly? > > Michigan has unique auto insurance laws (it’s one of the only no-fault property damage states left) and I wouldn’t be so quick to assume that it’s OK to take the money without repairing your vehicle. If the check was cut by an insurance company, call them and talk to the claim handler in charge of your case. They’ll explain it all to you. Well I didn’t get the answer I wanted from my agent’s able assistant. First, to answer the question above… the check was written by my insurance company and made payable to me and the body shop. There is a lien on the vehicle but that seems not to have come into play. As for the answer… my contact said that if I didn’t repair the vehicle and kept the money I would have to take the collision and comprehensive coverage off the vehicle. Its a 2013 Accord so I’m definately not going to do that. I asked her if that was an AutoOwners rule or standard and she said standard…at least in Michigan. ---
**Author:** ![Rachellelogram](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rachellelogram/32/8689_2.png) [@Rachellelogram](https://boards.straightdope.com/u/Rachellelogram)\ **Post date:** [May 20, 2014, 2:59pm UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588/24 "2014-05-20T14:59:24Z")
> [@What\_the](#): > > Well I didn’t get the answer I wanted from my agent’s able assistant. > > First, to answer the question above… the check was written by my insurance company and made payable to me and the body shop. There is a lien on the vehicle but that seems not to have come into play. > > As for the answer… my contact said that if I didn’t repair the vehicle and kept the money I would have to take the collision and comprehensive coverage off the vehicle. Its a 2013 Accord so I’m definately not going to do that. > I asked her if that was an AutoOwners rule or standard and she said standard…at least in Michigan. The insurance company will not write a check in your name exclusively if you have an outstanding car loan. You need to repair your car. Age of the vehicle notwithstanding, you \*\*cannot \*\*drop collision and comprehensive coverages while you have a car payment. If you try, your lender will buy (quite expensive) insurance in your name and charge you for it. Just to make this absolutely clear: when a lender is involved, you are not the only stakeholder in the value of your vehicle. Your lienholder has a financial interest in the car until you pay it off. You do not have a choice but to fix it. Pocketing the check is not a good idea unless your car is paid off–and even then, Michigan may not allow this due to their wonky no-fault PD coverage. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [May 21, 2014, 2:35pm UTC](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588/25 "2014-05-21T14:35:56Z")
> [@Rachellelogram](#): > > The insurance company will not write a check in your name exclusively if you have an outstanding car loan. You need to repair your car. Age of the vehicle notwithstanding, you \*\*cannot \*\*drop collision and comprehensive coverages while you have a car payment. If you try, your lender will buy (quite expensive) insurance in your name and charge you for it. > > Just to make this absolutely clear: when a lender is involved, you are not the only stakeholder in the value of your vehicle. Your lienholder has a financial interest in the car until you pay it off. You do not have a choice but to fix it. Pocketing the check is not a good idea unless your car is paid off–and even then, Michigan may not allow this due to their wonky no-fault PD coverage. Gotcha…for some reason when a lienholder was mentioned I thought that the check would be made out to me and it. Now it makes more sense that the second party involved would be the body shop who can indirectly serve the lienholder’s interest. [Previous page](https://boards.straightdope.com/t/creative-auto-insurance-claim/688588.md?page=1)