Are we allowed to keep the money for repairs?
My husband’s car was involved in a hit-and-run incident, but luckily they caught the driver. We started the claims process, and the insurance company is sending us a check for repairs. Fortunately, the damage to the car was only cosmetic—a small dent—and a friend who inspected it confirmed there’s no mechanical damage.
The insurance agent informed us that the check will be issued directly to us and it’s our responsibility to arrange the repairs. Is it permissible for us to keep that money instead of using it for the repairs?
Yes, you are generally allowed to keep the insurance payout and not use it for repairs, especially if the damage is cosmetic and does not affect the vehicle’s functionality. However, it’s important to review the terms of your insurance policy and the details of the claim. Some policies may have specific stipulations about how the funds should be used. If you’re unsure, it might be a good idea to consult with your insurance agent or a legal expert to clarify your rights and obligations regarding the claim payout. Keep in mind that if you decide not to repair the car now, you should consider the potential impact on its value or any future claims.