Can I cash and keep the money from an auto insurance co. made out to me and the lien holder?

I have damage to my car, but it's not totalled, just needs a replacement cover for above the wheel. The claims check is written out to me and the lien holder which is a bank. Am I able to keep the cash for other purposes, like bills, instead of getting my car repaired? Or is it required to fix the car b/c it's endorsed to both of us?

Can I cash and keep the money from an auto insurance co. made out to me and the lien holder?
If it's made out to two payees, both will have to endorse it before the bank will cash it. Ask the lien holder, they will probably tell you to endorse it and send it to them, and they will make out a check for you to use to get the repairs done. Since they are the legal owner of the car, yes, they can insist the repairs be done.
Reply:No, You cannot take the money and use it for other things. The insurance check is for the repairs of the car which is still owned by the bank....not you. The coverage you have is to protect the interest of the lender assuring the property will be kept in good condition until the loan is paid off.
Reply:You can probably cash it, but if the car gets repossesed by the bank you will be responsible for the repairs.
Reply:No you cannot cash it and keep the money. The lienholder is the actual owner, and they will want the vehicle repaired.





If you were not at fault in the accident, make a claim against the other person's auto policy. They will pay you for the damage without putting the lienholder info on the check. They are not required by law to do so.
Reply:Yes you can do that.. I got about 800 for a scratch on my bumper, you couldn't really even see it unless you knew it was there or got up close... I decided to say screw it and keep the money...
Reply:Repairs only otherwise it is insurance fraud.
Reply:Yep, you can cash it.





My mom did the same thing some guy hit our salvage title prizm and she got like a thousand dollars for it. It was mainly cosmetic, she used it to pay bills. We still have a pretty ugly side, but she got a thousand bucks!
Reply:it has to be endorsed by the lienholder, also, to be able to cash it, if it says "and".if you get them to endorse it, you can spend it, but misuse of the funds is why insurance rates are so high.better to just get your car fixed.
Reply:If the check is made out to two parties and you attempt to cash it and are successful (without the other parties signature or with their signature forged) you will be charged with fraud and theft. And depending on the amount, you could be looking at serious jail time.





If you have a lien on the car the lien holder can require you to fix the damage to their satisfaction or you will be in violation of the contract and that would make the contract void and they can reposses the car.





You need to contact the lienholder and do what they tell you to avoid jail and losing your car.
Reply:Yes you can. I've done it twice. It won't come back to bite you unless you default on your car payments
Reply:Nope. The only way you can cash it is to send to the lienholder, have them endorse it and send it back to you. Good luck with that one. They would never do that.