My mother was recently involved in an accident. She was in her Accord, and some lady hit her from behind. So, it was the other driver's fault.

My mother doesn't really care about cars much, and the Accord only sustained minor damage. So, rather than get the car repaired, she would just like to get the money instead. My question is this...


#1.
Does the law state that cashing out is an an option? When my mother spoke with the insurance agent, she wasn't offered it. In fact, she didn't think she could do it until I told her so. So now I'm wondering...is cashing out a right conferred by law, or is a priviledge that insurance companies can decide to offer or not?

#2.
Assuming that cashing out is possible, how is it usually done? I've done this once some years ago, and it involved getting quotes from three body shops, and then taking them to the adjustor for agreement. Is this still the case? For reference, the other driver's insurance is AAA, and that's who we're dealing with.

My mother's car is insured on my policy, so I'm probably going to call AAA on her behalf later in the day, but before doing so, I'd like to know what my legal rights are, in case they give me shit.

Any advice, links, etc., is greatly appreciated. Thanks a lot...

 

Insurance is there to restore you to a poistion that you were in prior to an accident, therefore I would think that it is highly unlikely that your mothers insurance company would pay out a cash equivilent of the repair to her car.
There are exeptions to this, one of which is house contents insurance where, for example, you may have various items stolen and the Insurance may pay out an amount equivilant to the value of the stolen items.
In auto insurance however they just repair the vehicle.
If, however, you mother has started to feel a pain in her neck that may or maynot be whiplash however...........

 

Does she still have a loan on the car?

If no. she can provide the estimate to the ins co and they will cut her a check. they will require at least 3 repair quotes and will generally pay the smallest amount in a check payable to her.

if she still owes money on the car the above will still apply but the check will be made out to your mom and her bank or your mom and the body shop.

 

RossoS2K,

Thanks! The car is paid in full, there's no leinholder, so the payee for the check would definitely be my mother.

Do you know if this sort of "cashing out" policy is either A) my legal right, or B) standard policy for all insurance companies?

Thanks a bunch!

 

Im not sure about Cali. Its a different planet from NH.
Call a local insurance agent, pick one randomly from the phonebook and ask.

good luck.

 

This is my whole take on this and it kinda goes along with what Rosso is saying. Most Lein holders would require the car be fixed by a professional to ensure the value of the car changes as little as possible.

That being said, if your mother is the sole lein holder, or owner she should have the right to decide who fixes the car. Take this example. What if I personally work on my own car and someone hits it. If I own the car don't I have the right to do my own repairs. I would say yes. I find it hard to believe that an insurance company could refuse to pay to YOU if you own the car. You are the one who suffered the damages, not the bank or lein holder. Call an arbitrary insurance company, like they said above and confirm this, but I think it is so.

 

I've cashed out repairs on vehicles in the past. Didn't have any problems. Just remember that if you sell the car you have to declare the damage.

 

A friend of mine in California recently did this. He also had AAA as did the driver at fault who hit him from behind. Scaped his bumper and AAA cut him a check for $500. End of story and he still hasn't fixed his scraped bumper. Can't even see the damage.

 

Thanks a lot guys...cashing out didn't turn out to be any problem at all, and a check is on the way.