Cashed Check for Accident Claim
I had a deer collision a while ago and recently received the check for my insurance claim. This is my first experience navigating any insurance procedures beyond just paying the premiums. I deposited the check at my bank, but it hasn’t cleared yet. Since my car is financed through a credit company, the check was made out to both of us. I’m feeling uncertain about what to do next, especially after I foolishly consulted Google and learned that cashing a check meant for both the lien holder and myself could potentially be considered insurance fraud. Can anyone advise me on how to handle this situation? I definitely want to avoid any issues with insurance fraud. Thanks!
First, don’t panic! You’re not alone, and it’s understandable to feel concerned about this situation. Here are some steps you can take to address it:
Contact Your Bank: Reach out to your bank to find out the status of the check and let them know that it was made out to both you and the lien holder. They might advise you to wait for the funds to clear or guide you on what to do next.
Notify Your Lien Holder: Inform the credit company that financed your car about the situation. They can guide you on the proper steps to take and may require you to endorse the check before you can process it.
Consult Your Insurance Company: Contact your insurance agent or the claims department for advice. They can clarify the next steps you should take regarding the claim and the check.
Consider Endorsing the Check Together: If the lien holder agrees, they may need to endorse the check alongside you, or you may have to bring the check to them so they can cash or deposit it properly.
Keep Records: Document all communication related to this issue, including who you spoke with and what was discussed. This will be helpful if any questions arise later.
Be Honest: It’s always best to be upfront with your bank and lien holder. Mistakes happen, and they will likely appreciate your honesty in resolving the matter.
By taking these steps, you’ll be working towards a solution while ensuring everything stays above board. Good luck!