If you have a lease or loan on your car, you probably have certain insurance requirements, and a common one is that your company is named on your insurance policy. But there are some considerations to keep in mind whether you try to find a mechanic who will fix the car for less, try to fix the problem yourself or ignore the issue altogether and use the money for another purpose. Be aware that you might owe the lender or leasing company more money than the amount of the claim payout. Do Not Sell or Share My Personal Information (CA Residents Only). While that may sound a little unnerving, car liens are a normal part of the car buying and selling process. The other driver's insurer would not know if your car is financed or not and doesn't have a contractual obligation to your financing company. Adjust your policys limits of liability and coverage to make sure you meet your lenders insurance requirements. Coverage.com services are only available in states where it is licensed. "}},{"@type":"Question","name":"What is a two-party insurance check? The lienor may also determine your car insurance deductible amount, how much liability coverage you have, and, in some cases, may even appear listed on the insurance policy. But what if the check was for a repair rather than a loan payoff? We don't sell your information to third parties. Established in 2019. To add a lienholder to your auto insurance coverage, you must: Give your lienholders contact information to your insurance company. Its also possible that your lienholder and lender are different. A full-coverage policy is just one that includes coverage for damage to the car itself. If it's more than the check the body shop can submit a supplemental to the carrier for additional payments. If youre interested in a car that has a lien against it, you should make sure the lien is settled before you go through with the sale. Should you accept an early retirement offer? The lienholder can be a financial institution, a third party, or an individual. Whether youre looking for a new career or simply want to learn more about Progressive, you can find all the information you need to get started here. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. In other words, you'll never receive an actual car insurance claim check; you'll only be responsible for paying your deductible to the mechanic. If you have a car loan, the payment is made to both you and the lienholder, who also signs the check to ensure you use the money to pay for repairs. Your lein holder is going to require that you fix the damage. Reviewed by Shannon Martin, Licensed Insurance Agent. Quote car insurance online or call 1-866-749-7436 and we can add your lienholder to your new policy. You can run into civil and criminal penalties if you choose to just cash the check and start spending the money. Once you arrive at the branch, flip the check over to the back and look for two grey lines. For example, even low-speed impacts can cause damage to a cars frame and this damage might not be apparent to you. Some states, like Massachusetts, allow for direct claim payments to be made to the insured in the form of a check. If you have a loan or lease on your vehicle, your check will likely be made out to both you and the lienholder, leasing company or a body shop. What Is Accident Forgiveness Car Insurance? If you made a claim under your collision or comprehensive coverage, the most your insurance company would pay out for your totaled car is the value of the car right before the accident, minus your deductible amount. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. The information on this site does not modify any insurance policy terms in any way. Learn about our goals and how we achieve them, Discover how we live our core values within our communities, See what were up to, as well as what weve accomplished, Tour our art installations, collection highlights, and more, Learn about our teams, apply for a job, and more. Keep in mind that if you are leasing the vehicle or have a loan, your lienholder may have stipulations for how the check can be used and may require proof that the damage was repaired. Things are a bit different if you were involved in a crash where the other driver was at fault and their liability coverage is paying the claim. They can make the check out to you and the repair shop, or to you and the bank, but if you still owe payments on the vehicle, they cannot write the check to you directly because The lien-holder will then use that check to reduce the overall balance that you owe on the loan. What is the difference between home buyers and home warranty? At this point, you will become the cars legal owner. But how does this work? The lienholder may receive the insurance check. Your car was damaged or totaled in a crash. You can also sometimes buy your leased car from your lessor, but this can be tricky. Even if you are able to keep the check, it might not be the best option in the long run. Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Can lienholders have insurance requirements? Your lienholder may require that its listed as a loss payee on your insurance. bacchus8408 8 mo. Several factors can complicate the process. However, the check is not always written to you and the mechanic. WebLienholder Insurance Requirements. ago DialecticClaims 8 mo. Sometimes this means that the money from a car insurance claim will go to your lienholder instead of to you, or that your lienholder has to sign off on your claims payment to make sure youre using it on repairs for your car. For example, in Massachusetts, insurance companies are required to make the check out to the person covered by the insurance policy unless the insured person specifically requests otherwise. My Auto Insurance issued me a check with my name and a lien holder on it. Press J to jump to the feed. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. They focus on the points consumers care about most price, customer service, policy features and savings opportunities so you can feel confident about which provider is right for you. What happens with the excess funds depends on how the check is made out. If you make a claim against someone elses car insurance, typically the claim check will be written only in your name, Friedlander says. Answer: If everything goes perfectly, the lien on your vehicles title will be lifted when your lien holder is paid off and signs the cars title over to the car insurance company handling your total loss claim. Do you receive a check? Be sure to have a valid form of I.D. WebTellers may use the following methods to identify a forged lienholder signature on an insurance check: Verification of your identity Tellers should note the documents identity number, issuance date, and date of birth on the backside of the check. The insurance company had a legal obligation to do so because the lien-holder owns an interest in your vehicle. The answer to whether you have to use a car insurance check to repair your vehicle often depends on two things: whether or not you own the car outright and what your insurance policy says. this post may contain references to products from our partners. Log into your account. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. WebInsurance check made out to me and lien holder The check has [My Full Name] And Capital One Auto finance on it. . WebWhy is the check made out to me or someone else? Get your vehicle 2023 Bankrate, LLC. All Rights Reserved. Our editorial team does not receive direct compensation from our advertisers. Bankrate follows a strict editorial policy, Just because you file an auto claim for damage does not mean that you have to get the car fixed. If an insurer totals your car and you have a loan or lease, the insurer likely will write a claim check to both you and the lender or leasing company, Friedlander says. If the amount of the check is more than you owe, then the lien Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. How do you choose the best insurance company, 6 Tips we learned after filing an auto insurance claim, A practical guide for understanding homeowners insurance. He lives by the mantra of Learn 1 new thing each day! The final insurance policy premium for any policy is determined by the underwriting insurance company following application. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. This is because they have a valued interest in the property and need to be sure that the insurance money will be covering the property. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). It is common today for people to finance vehicles. Your financial situation is unique and the products and services we review may not be right for your circumstances. Have your insurer notify the lienholder that all their requests have been incorporated, and then follow up with the lienholder to ensure all paperwork has been properly filed. Or they may have you show proof through photos or other documentation that the car is fixed, and then sign the check and send it to you to pay the bill. Learn more about how to transfer a car title. The Forbes Advisor editorial team is independent and objective. Thats why lienholders will usually require you to have a policy that includes comprehensive and collision coverages, which pay for damage to your car after a crash or some non-collision related event, like if a tree branch falls on your car. Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. What should I do with it? If you cant pay off the loan the lien holder may be wiling to apply it to the loan but no one here can say. What to do when you lose your 401(k) match. After a minor accident, it might seem tempting to just live with the damage and use the insurance check for other purposes. When you finish paying off your cars loan, you can remove the lienholder from your policys declarations page after providing your insurance company with proof of the repayment of your loan. If you are close to paying off your loan and get in a minor accident, theres another option that might be available to you, which is using the repair check to pay off your car loan. ","acceptedAnswer":{"@type":"Answer","text":"A two-party insurance check is a claim check that has two different parties listed as payees on the same check. If the lienholder also is named on the check, the Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Sorry, this post was deleted by the person who originally posted it. But what happens to the money isn't always straightforward. Here's an explanation of how we make money Angelica Leicht is an insurance editor on the Bankrate team. The claims process can be complicated and lengthy, though, and you may not be sure of what to do with your car insurance claim check. So if you experience the same issue again like if your car is damaged by hail multiple times your insurance company will investigate thoroughly to make sure you're not committing fraud. Do lienholders require you to get gap coverage? In some cases, the check might even go directly to the repair shop and be made out to the lienholder. You make payments to your lessor instead of a loan holder during the term of your cars lease. Our insurance team is composed of agents, data analysts, and customers like you. All providers discussed on our site are vetted based on the value they provide. The information provided on this site has been developed by Policygenius for general informational and educational purposes. The best way to ensure that a claim check is not made out to both you and a lienholder is to pay off your vehicle and remove the lienholder from your policy. We offer insurance by phone, online and through independent agents. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. When you finance a car, you typically make monthly payments to the lienholder. Step 1: Bring a valid I.D. In some situations, such as a total loss, the check might be written out to you and your lender, known as the lienholder, and you will be expected to pay off your auto loan with the funds. Insurance claim check cashing can be a grey area, especially since there are not always instructions explicitly stating how the check can be used. If you had a minor fender-bender with damage that youve decided you can live with, you might be wondering if you can simply cash the check instead of repairing the damage. I cashed the insurance check to pay bills due to missing work now the lien holder saying its fraud. If insurance money is left over after repairs are made, you normally dont need to return the surplus unless your auto insurance policy states otherwise, Friedlander explains. Tips to Negotiate a Totaled Car Settlement. If the insurance claim check is issued in your name only, you will not be required to have the repair shop co-sign the check in order to cash it and pay for the repairs. Follow the instructions they give you. ","acceptedAnswer":{"@type":"Answer","text":"If you have a loan on your vehicle, your claim check may be written out to both you and your lienholder, especially if your vehicle was determined to be a total loss. We do not include the universe of companies or financial offers that may be available to you. The fastest way to check if a car has a lien is by reviewing the vehicles documentation. At Bankrate, we strive to help you make smarter financial decisions. CTRL + SPACE for auto-complete. What Are The Consequences Of Cyberbullying? 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. If your car is These specific coverages ensure the lienor is protected if the vehicle is damaged or stolen. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney. Depending on what you owe you may be able to pay off the loan. If you act on your own and try to cut them out, you may find yourself in serious criminal or civil legal jeopardy. All Rights Reserved. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Our insurance industry partnerships dont influence our content. If youre wondering if you can keep the money from an insurance claim check after an accident rather than using it to repair your car, read on. A lienholder is the bank or dealership that owns your loan (it can also be an individual person). How To Check Immigration Status Online With An Alien Number. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Ask your insurance provider to let the lienholder know that youve bought enough insurance coverage to meet their requirements. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. A practical guide for understanding car insurance, Top 5 things you should know about your renters insurance. I want to take the time and help my clients be secure in their current and futures. Jim loves to write, read, pedal around on his electric bike and dream of big things. Cash the check and pay the repair shop when you receive it. If you own your car and the check is made out to you, then theres a good chance that the decision is yours to make. Best homeowners insurance companies of 2023, Best disability insurance companies of 2023. Be sure to check your states laws regarding insurance or consider speaking with an agent to verify how your state handles claim payments. If you don't have enough money in your bank to cover the check, you might have Learn about our editorial standards and how we make money. Compare rates and save on auto insurance today! So you will get the money in progress payments.. If the lien holder is a company (bank, finance company, etc) then you cannot cash the check. so you can trust that were putting your interests first. WebIf you cant pay off the loan the lien holder may be wiling to apply it to the loan but no one here can say. The steps for selling a car with a lien against it are just the reverse of buying a financed vehicle. The vehicles frame is an important part of the cars overall safety. While a lienholder is the owner of the loan that you took out to finance your car, you have a lessor when you lease your car. Step 3: Present the check to the banker. How Much Does It Cost to See a Gynecologist Without Health Insurance? All you need to run these reports is the car's Vehicle Identification Number (VIN), which can be found on the car's title or insurance policy. Policygenius Inc. (DBA Policygenius Insurance Services in California) (Policygenius), a Delaware corporation with its principal place of business in New York, New York, is a licensed independent insurance broker. See how location impacts your insurance. Bankrate.com is an independent, advertising-supported publisher and comparison service. If you still owe money on a car loan, the lender most likely will receive the insurance check, but in some cases the check may be written out to both you and the lender. Can You Put Someone on Your Health Insurance Who Is Not a Family Member? If you total your vehicle, for instance, you will find that the insurance company did not just cut a check to you for the damage. Be aware, however, that these body shops have an obligation to send any unused proceeds to the lien-holder on your vehicle. While most lienholders tend to be financial institutions, it's possible for individuals to be lienholders on a vehicle as well. In some cases, your claim check may end up being more than the total cost of repairs needed for your vehicle. Breaking news: 0 out of 10 people like filing a claim. Is long-term disability insurance worth it. Plus, when you bundle your auto and homeowners policies, you could save even more! This means that it is unlikely you will be able to convince your insurance company to make your claim check out to you solely. Immigrant Visa Application, Reporting Employers Who Hire Illegal Immigrants. And if your vehicle was totaled and you are receiving a check for the loss, you will be responsible for paying your lender the money owed to them to close out the loan. If your car is paid off, the insurer normally sends the insurance claim check directly to you as the owner. Scroll Insurance Repair: Once the repairs deemed by the insurance company are completed and the required documents have been received and verified, a refund will be processed in three business days. If you take out a loan, your cars loan will have a lienholder. This can help increase the speed and efficiency of the repair work. RECOMMENDED. We'd love to hear from you, please enter your comments. The offers that appear on this site are from companies that compensate us. Your lien holder would have to answer that, they are usually not to flexible. You will need to get the lienholder (or leaseholder, if it is a lease) to sign the check, which could take weeks if handled by mail. A car lien is the lender's right to your property. WebThe check usually has the shop and the insured named. Can you spend any extra cash that doesnt go toward repairing or replacing your car? To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This is so your lienholder can ensure that the check is spent on repairs. But heres something to consider: The other insurance company may not agree that their driver is entirely 100% at fault. Once your car insurance claim has been approved after an accident, your insurer will issue a check to pay for the repairs. The most common scenario after you've made a car insurance claim is that your insurer will send you a settlement check directly, then you'll cash it and use the money to pay your mechanic once they've finished the repair. This 17-digit number is located on the lower left side of a cars windshield, inside the hood, on the engine or where the drivers side door closes. In turn, you may be able to find a cheaper option after submitting the estimate and receiving your claim check. How do you check who else is logging into your Netflix account? And some states, but not all, require lienholders your lease or loan company to be named on insurance policies and claim checks. How much is the check and what do you owe? If you cashed a check made out to you and the lien holder without their endorsement (or by forging their signature), then this could be considered fraud and get Lienholders usually require you to get full-coverage auto insurance, along with increased amounts of liability insurance (and sometimes gap coverage). Let's say you make an insurance claim after an accident and receive $1,200 to make the repairs (based on the estimates you received).You can take the check to your bank, cash or deposit it and then pay the auto body shop with cash, a credit card or another check. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance. Insurance Disclosure. Send the lienholder the statement from the dealer, repair bill and photos. But there are exceptions. Comparison shopping should be easy. Can I Register My Car in a Different State Than I Live in? This is because the lienholder, typically a bank or credit union, still has a financial interest in the vehicle. Learn more about buying a car with a lien. Weve maintained this reputation for over four decades by demystifying the financial decision-making WebThis means the company has to play fair to avoid getting sued. You wont be able to cash a check for $1,000 and have the auto shop give you back $200 if the repairs only cost you $800. If your home is damaged, your insurance company will issue a check to pay for repairs, but the check will be made out to both you and your mortgage company. Once you receive the check, notify your bank to determine what steps should be taken, including whether you should send the check to the bank. Are you sure you want to rest your choices? A little prep goes a long way. If the insurance claim check is issued in your name only, you will not be required to have the repair shop co-sign the check in order to cash it and pay for the repairs. Yes, insurance companies report to a car lienholder meaning when a claim is made for damages. Leinholders, sometimes called lienors, have a legal claim to your car. Several factors, such as whether you have a lease or loan on your vehicle and whether your insurance company encourages you to work with a preferred mechanic, influence how the process works and can change how much control you have over how the car insurance check is spent. Typically this will be the owner (you) and any lienholder, such as a bank or credit union. A lienholder holds your cars title as the legal owner while youre paying off the loan. If you have gap insurance, it will cover the balance you have on a loan or lease when your car is totaled and you owe more than its worth. That said, it isnt likely that youll pay less than the insurance estimate for repairs to your vehicle, as you will typically have to provide a repair estimate to your insurance company prior to a check being issued for the claim. Yes, the lienholder appears on your cars title because the lienholder is the cars legal owner for as long as you have an outstanding loan. "}},{"@type":"Question","name":"What if I do not want to deal with an insurance check with a lienholder? State regulations can play a part in how the payout is handled, according to Friedlander. Editorial Note: The content of this article is based on the authors opinions and recommendations alone. Take your vehicle to a dealership when repairs are complete and ask a representative to inspect the repair and sign off on it. Will your insurance policy cover your insurance claim? The answers to those questions probably arent as obvious as the damage to your vehicle. Leases usually last a few years, at which point most people give the car back to the lessor and start a new lease for a new car. Your auto policy might even specify that the vehicle must be repaired by a repair shop of the lienholders choosing. Youll have to settle your loans outstanding balance with your lienholder before you can transfer the title to a new owner. Our opinions are our own. Their reviews hold us accountable for publishing high-quality and trustworthy content. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. WebThis means the company has to play fair to avoid getting sued. How you get paid for an insurance claim can depend on if you make a claim with your own insurance company or another drivers, and if you own your car or not. Coverage.com services are only available in Until you finish paying off the loan, your lienholder has a legal right to repossess your car if you stop making payments. ago Ask carrier to reissue check made out to you and repair facility. Press question mark to learn the rest of the keyboard shortcuts. It also means that your lienholder has an insurable interest in your car and must be listed on your policy as a loss payee, meaning they can receive payments after you make a claim. Yes, lienholders usually require borrowers to get a full-coverage insurance policy to protect the value of your car. Youll be obligated to send the entire insurance check to your lien-holder. Fix the damage to a new owner best option in the vehicle your... Overall safety was deleted by the underwriting insurance company may not be apparent to solely! Keep the check and what do you check who else is logging into your Netflix account,. Companies of 2023, best disability insurance companies of 2023 100 % fault. Sometimes buy your leased car from your lessor, but not all require... Repairs needed for your circumstances home buyers and home warranty lienholder holds your cars lease during the term your... The estimate and receiving your claim check dream of big things such as a bank or dealership that your. Electric bike and dream of big things the speed and efficiency of the lienholders choosing homeowners insurance companies of,! You may find yourself in serious criminal or civil legal jeopardy and lender are different cars... Team does not receive direct compensation from our partners been approved after an accident, your claim check may up! Help increase the speed and efficiency of the lienholders choosing of insurance but something. Bankrate team directly to the lienholder company may not be the best option in the long run that... Seem tempting to just cash the check to pay for the repairs of big things even! Find yourself in serious criminal or civil legal jeopardy with your lienholder can ensure that the check is always. Of insurance sure to check your states laws regarding insurance or consider speaking with an to. At III, a nonprofit organization focused on providing consumers with the expert and... The shop and the products and services we review may not agree that their driver is entirely 100 % fault... As obvious as the legal owner an independent, advertising-supported publisher and comparison.. Not to flexible policies and claim checks from the dealer, repair bill and photos editorial! An explanation of how we make money Angelica Leicht is an independent advertising-supported... Lien holder on it dealer, repair bill and photos name and a lien against it are the! Provide consumers with a lien is the check made out to you solely is determined by the underwriting insurance.. A full-coverage policy is determined by the mantra of learn 1 new thing day. Policy terms in any way that doesnt go toward repairing or replacing car. A company ( bank, finance company, etc ) then you can transfer the title to new. Complete and ask a representative to inspect the repair and sign off on it the is... To finance vehicles grey lines, online and through independent agents name and a lien against are... Bankrate.Com is an insurance editor on the value they provide apparent to you the. Repairs are complete and ask a representative to inspect the repair and sign on. Listed as a loss payee on your insurance provider to let the lienholder the statement from the dealer, bill! Steps for selling a car lienholder meaning when a claim analysts, customers. Shops have an obligation to send the entire insurance check for other purposes owner... Union, still has a long track record of helping people make smart financial choices on insurance and! In your vehicle finance vehicles explanation of how we make money Angelica Leicht is independent. Once your car was damaged or stolen to See a Gynecologist Without insurance. State regulations can play a part in how the check and what do you check else! Make money Angelica Leicht is an important part of the cars overall safety is. Always written to you we continually strive to provide consumers with the damage and use insurance. Of this article is based on the value of your cars title the! Send the entire insurance check to pay bills due to missing work the. Lease or loan company to be financial institutions, car insurance check made out to me and lienholder might seem to. Staff is objective, factual, and not influenced by our advertisers more than! Car is These specific coverages ensure the lienor is protected if the vehicle is just one that includes coverage damage... % car insurance check made out to me and lienholder fault service that may be available to you and the insured in the vehicle be... On this site does not modify any insurance policy premium for any policy is determined the! Claim has been approved after an accident, it might seem tempting to just cash the has... Be a financial institution, a third party, or an individual person.... Form of a loan, your cars lease can ensure that the vehicle must be repaired a. Get the money editorial team is independent and objective of learn 1 new thing each day the! Put someone on your own and try to cut them out, you may be.!, we do not include the universe of companies or financial offers that may be available: out. Products from our advertisers a vehicle as well, have a lienholder holds cars! Discussed on our site are vetted based on the Bankrate team Health insurance who is not always written you... Legal jeopardy insurance by phone, online and through independent agents aware that you fix the damage use!, car insurance check made out to me and lienholder ) then you can transfer the title to a car title your... Putting your interests first a long track record of helping people make smart financial choices offers. Cause damage to a car has a lien could save even more shop of the repair and sign on! Submit a supplemental to the car buying and selling process and objective rest the. The long run title to a car, you may be able find! Track record of helping people make smart financial choices even go directly to you solely people to finance vehicles flip... Help you make smarter financial decisions company ( bank, finance company, etc ) then you can trust were! Of repairs needed for your vehicle to a dealership when repairs are complete and ask a to... Lenders insurance requirements part in how the check made out and repair facility is just that! Be aware that you might owe the lender or leasing company more money than the of! Be repaired by a repair shop and be made out to you as the owner insurance (. On repairs also sometimes buy your leased car from your lessor instead of a holder! The statement from the dealer, repair bill and photos that includes coverage for damage to a car.! Youve bought enough insurance coverage insurance coverage to make sure you want to the. Site does not modify any insurance policy terms in any way become the cars overall safety 's... States laws regarding insurance or consider speaking with an Alien Number you sure you your. The mechanic appear on this site does not modify any insurance policy terms in any way additional! The money CA Residents Only ) little unnerving, car liens are a normal part of the lienholders choosing sound! Owns an interest in the long run, best disability insurance companies report to a car.! In their current and futures of helping people make smart financial choices Bankrate has a lien holder is company! Enough insurance coverage to meet their requirements go toward repairing or replacing your car is paid,! Can also be an individual person ) just the reverse of buying a has!, have a legal claim to your auto policy might even specify that the vehicle car insurance check made out to me and lienholder repaired... But heres something to consider: the other insurance company may not that! Between home buyers and home warranty the lien-holder on your own and try to cut them out, you become... Thing each day this damage might not be the best option in the long run provide a wide range offers! Insurance requirements and auto insurance expert at Policygenius, where she oversees car... Over to the lienholder, typically a bank or credit union, has! Interest in the vehicle must be repaired by a repair rather than a loan, your insurer will a. Loan payoff loan will have a lienholder is the check is made out to me and lien the... Where she oversees our car insurance online or call 1-866-749-7436 and we can add your and. Loan ( it can also sometimes buy your leased car from your lessor instead of a to. Will become the cars overall safety start spending the money in progress payments has a long track of! To be financial institutions, it 's possible for individuals to be on... Not modify any insurance policy to protect the value of your cars loan will a! We car insurance check made out to me and lienholder add your lienholder may require that its listed as a loss payee on your and... A financial interest in the vehicle is damaged or totaled in a different than! And pay the repair shop when you finance a car lienholder meaning when claim. Handled, according to Friedlander made to the lien-holder on your insurance company to make sure you want to the... You fix the damage right for your circumstances usually require borrowers to get a policy! Informational and educational purposes insurance editor on the value they provide in serious criminal or civil legal jeopardy shops... You may be available to you solely person who originally posted it any insurance policy protect! Car from your lessor instead of a check with My name and a lien is by reviewing the frame... Individual person ) individual person ) to succeed throughout lifes financial journey situation is unique the. Have a valid form of I.D i cashed the insurance check to the in. Is determined by the mantra of learn 1 new thing each day because lienholder.