Can I Fix My Own Car With Insurance Money?

You may be able to fix your own car with insurance money if you own your vehicle outright. If you’re leasing or financing your vehicle, however, you will likely be required to get your car repaired at the shop your insurance company or lien-holder requests.

Were you injured in the accident? You may want a Phoenix car accident lawyer to help you get all the money you deserve for your medical bills, vehicle damage, pain and suffering, and more.

Can You Fix Your Own Car With Insurance Money?

If you fully own your car and aren’t making any payments on it, the insurance company may send you a check for the repairs directly, giving you the option to make the repairs yourself. 

However, if you are financing or leasing the car, your lien-holder (the bank, credit union, or other institution you make car payments to) may get the money or may ask your insurance company to send the money directly to an approved auto shop to ensure the work gets done properly.

Is the Insurance Company on Your Side?

A related question you may have is: After an accident, is the insurance company my friend or my enemy? In short, the insurance company is more interested in their bottom line than your financial situation.

After all, insurance companies are businesses trying to make a profit. Their profit comes from paying out as little as possible–not from giving generous settlements to their policyholders.

If your insurance company refuses to offer you a fair settlement after you were injured due to another driver’s recklessness, you may want to contact a personal injury attorney.

For a free legal consultation, call 866-499-8989

Do You Have to Fix Your Car With Insurance Money?

This depends largely on whether you own your car or if you’re leasing or financing it. Owning your car may provide you with more options than leasing or financing.

If You Own Your Car Outright

If you bought your car with cash or have finished making payments on it, your insurance company may allow you to keep the money without making the actual repairs. 

However, choosing not to repair your vehicle may affect your ability to make future insurance claims, result in higher premiums in the future due to existing damage, and possibly even have legal implications if you’re driving a vehicle with compromised safety features.

If You’re Financing or Leasing Your Car

If you’re making payments on your car, you technically don’t own it and don’t have any say in whether or not to fix it. The entity that owns your vehicle will typically insist that you get it repaired to protect their investment.

What Happens if You don’t Use Insurance Money for Repairs?

Let’s say you leave the damage on your vehicle and use the insurance money for something else. If you get into another accident with damage in the same area, your insurance company might refuse to repair the new damage since they have already sent you money to fix the prior damage. 

It may be too difficult to prove what damage the new crash caused and what damage the insurance company already paid for–but you didn’t repair–from the previous accident.

Can You Keep Extra Money from an Insurance Claim?

What if the insurance check is more than the repairs? Can you keep the extra money? You should check with both your insurance company and your state laws. Either might demand that you return any excess funds beyond what was required to fix your car. 

In some instances, you may be allowed to keep the extra money, but you should never assume since that might result in you accidentally committing insurance fraud. 

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Do You Need to Report the Claim?

If you own your car outright, have a high deductible, and the damages are relatively small, it may be worth paying to have your vehicle repaired without filing a claim that could cause your insurance premiums to increase. However, if there was another party involved in the accident, your insurance company will need to know about it. 

Failing to report a claim could also result in complications with future claims or missing out on comprehensive coverage benefits.

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If You Were Injured, Contact an Arizona Car Accident Lawyer

Even if you’ve already received payment from the insurance company for the damage to your car, it may not be too late to file a claim for the injuries you suffered in the crash. According to Arizona law, section 12-542, you have two years from the date of the accident to file a claim.

Since personal injury lawsuits are separate from the money the insurance company may have already sent you for the damage to your car, you still have the right to pursue compensation for your injuries.

At Zanes Law, we have a 99% win rate and have recovered more than $500 million for our clients. Let us get the money you deserve for your injuries, lost work, and pain and suffering. Schedule a free consultation today.

Call or text 866-499-8989 or complete a
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