How does car insurance claim check cashing work?

Car insurance claim check cashing depends upon various factors, including the number of parties listed on the check and the insurance company. Some checks may include both your name and that of the repair shop, indicating that the funds will be disbursed to the shop once you’re satisfied with the repair work.

What is insurance claim check cashing?

Insurance claim check cashing can be a gray area, especially since there are not always instructions explicitly stating how the check can be used. While there are multiple ways that a claim check can be handled, it will generally be made out to the individuals primarily responsible for seeing the repairs through.

How do insurance companies cash a check?

Different insurance companies have their own procedures for cashing an insurance check. For example, one may name the repair shop and you, which means that the shop will get the funds when you’re happy with the quality of the repairs. Both parties must endorse before money can flow from the insurance company’s bank.