Auto Insurance Claim Checks in 2025 (Everything You Need to Know)
Auto insurance claim checks are settlement payments for a covered claim. An insurance check with a lienholder requires their signature to cash. Choosing a top company will make the process go smoother. The best companies for claim satisfaction have J.D. Power ratings starting at 808 / 1,000.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Feb 20, 2025
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 20, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Auto insurance claim checks are settlement checks sent to you by an auto insurance provider for losses on a covered claim.
If you have damage to your car and have submitted a liability, collision, or comprehensive auto insurance claim to your insurance company that they’ve accepted, you may be expecting to receive a check. But you may not know whether they’ll make the check out in your name or if there will be any complications.
There are several different scenarios here that determine who your insurance claim check will be made out to. Read on to learn more about auto claim checks and how to cash them.
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- Insurers may make a claim check out to you if you own the vehicle outright
- A lender will make the check out to you and the lienholder for financed cars
- Sometimes, the check is made directly to the lienholder or repair shop
Auto Claim Checks Explained
An auto insurance claim check is the settlement a company gives you for a covered claim. You will usually receive the settlement amount in one check after an insurance adjuster has evaluated the validity of your claim and the damages.
In some cases, you will have to verify repairs and get the check endorsed to prove you used the settlement money on your vehicle. However, when the insurance check on a car comes from another party’s insurance provider, you may have the option to decide how to use the money.
For instance, if you’re involved in an accident where the other driver is at fault, and their insurer issues a payment to cover damages, you may have discretion over how to utilize that money.
Learn More: How to Make an Auto Insurance Claim When Not at Fault
However, it’s very likely that you’ll need to present a repair estimate beforehand to any auto insurance company. You’ll probably want to allocate the funds from the third-party auto insurance claim check toward repairing your vehicle.
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How to Cash an Auto Insurance Claim Check: 4 Easy Steps
How and when you cash an insurance claim check will depend on how many parties appear on the face. Most of the best auto insurance companies will 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. Keep reading to learn how to cash a car insurance check.
Step #1: Verify Amount
To make sure that the amount you are receiving in the settlement check is correct, check your auto insurance declaration page for your coverage limits. It will help you determine if anything is missing in your claim and determine if you are being compensated fairly.
See an example of what advice Reddit users have for fair compensation below.
How do I make sure I’m getting compensated fairly by insurance for my totaled car?
by inpersonalfinance
For instance, if you have modified car insurance for special parts in your car, make sure that the amount includes the cost of damages to your modified parts. You also need to verify the cost of repairs or the value of your vehicle if totaled (Read More: How do insurance adjusters determine the value of a car?).
If the estimated amount of repairs is higher than the settlement amount offered, collect proof showing why the cost is higher.
Step #2: Appeal Amount if Necessary
Once you have accepted the insurance check and cashed it, the auto insurance claim will be closed by the company.
If you disagree with the settlement amount and have proof that the settlement is unreasonably low, do not cash the check.
Instead, you should appeal the decision and gather as much supporting evidence as possible, such as quotes from repair shops.
In some cases, you may want to hire legal help to assist with the appeal process and gathering evidence (Read More: How to Dispute an Auto Insurance Claim).
Step #3: Check Endorsements
Who does the insurance company write the check to? In some cases, you may receive a car insurance claim check that they make out in your name alone. You can cash the check and use the money to pay for repairs in this situation.
However, if you have used a finance company or bank to partially or fully fund the purchase of the vehicle, you are not the outright owner, which makes the situation different. The insurance company is likely to make the check out to both you and the lienholder or sometimes to the repair facility.
The insurance checks are not valid until both parties endorse it to prove that the money will pay for the repairs. Remember, the lienholder has a vested interest in ensuring that the vehicle is in top-class condition at all times.
They want to know that you use the funds to repair the damage and may also require that the repair facility uses original equipment (OEM) parts rather than aftermarket (Read More: Best Auto Insurance Companies That Offer OEM Parts Coverage). Take a look at the different endorsement stations and what to do in each situation with your car insurance check.
Check Endorsed to You
So, what if an auto insurance claim check was made out to me? If the vehicle claim check was made out to you, you typically have the freedom to decide how to utilize the funds. You can cash the check and use the money as needed, whether it’s for repairing the vehicle, covering medical expenses, or any other relevant costs.
When another driver rear-ended my car, my insurance company approved my claim and sent me a check in the mail that I used for repairs.Luke Williams Insurance and Finance Writer
However, it’s essential to ensure that you’re using the insurance check cashing responsibly and in line with the purpose for which the insurance payout was intended.
Check Endorsed to Two Parties
Some states insist on a 2 party check from the insurance company to combat fraud, which means that the insurance company will always add the repair shop in those locations. Other states allow companies to make claim payments directly to the insured in a check, without requiring a two-party check insurance claim.
In this case, you might have some discretion. For example, if the damage to the vehicle was cosmetic (such as from hailstones), you might be able to keep the money without repairing it (Read More: Does car insurance cover hail damage?). You will not be able to claim for the damage again in the future, though.
To cash an insurance check with two names, both of you should endorse the car insurance claim check and visit the bank together to get the money.
Check Endorsed to Lienholder
Not sure how to cash an insurance check with a lienholder endorsement? If you receive an insurance check for a car issued in both your name and your auto loan provider, accessing the funds independently may not be possible.
Due to the inclusion of both names on an insurance check with a lienholder, an insurance check endorsement will be required, by both you and your lender. Once the check is forwarded to your lender with the necessary signatures, it can be cashed and allocated towards your car loan repayment or to settle the loan balance in full.
Step #4: Cash Check
Can you cash an insurance check at anytime? Once you have verified the settlement amount is fair and gotten the proper endorsements, you can cash the check (Read More: What is a fair settlement for an auto accident?).
In some cases, you will be able to simply cash the check online through your bank’s mobile app or website. If the amount is over your bank’s online cashing threshold, then you can visit your bank during their working hours to cash it in person.
How Auto Insurance Claims Work
When a car is damaged, the insurance company will want to send a representative to look before they provide an estimate for the repair cost. If you are only part-owner of the car, the policy will also name the lienholder, and the insurance company will address any check for repairs with this in mind.
Sometimes, the insurer will issue a vehicle insurance claim check that they make out to both you and the lienholder, or sometimes to the repair shop directly.
Will car insurance write me a check after the claim? Yes, they will issue a check if the claim is approved (Read More: How long can an auto insurance claim stay open?).
If they make the check out to you and the lienholder, you will need to prove that the repair shop has completed work to their satisfaction before they will add a counter signature.
Check your insurance company's policy when an insurance claim check is made out to you and lienholders.Daniel Walker Licensed Insurance Agent
With an insurance issued check to you and a lienholder, you will need to use the proceeds of the check to pay the repair shop directly. Lienholders will check, as they have a financial stake in your vehicle while there is still a loan on it.
Finding the Best Auto Insurance Providers for Claims
Having a great auto insurance company will make the claims process go much smoother, and you’ll have a better guarantee of getting a fair settlement amount. To find the best auto insurance companies for claims, make sure to check sites like J.D. Power to see which companies have a reputation for excellent customer service and timely claims processing.
J.D. Power Auto Insurance Claims Satisfaction Ratings
| Companies | Rating |
|---|---|
 | 826 / 1,000 |
 | 831 / 1,000 |
 | 846 / 1,000 |
 | 830 / 1,000 |
 | 810 / 1,000 |
 | 808 / 1,000 |
 | 818 / 1,000 |
 | 817 / 1,000 |
 | 818 / 1,000 |
 | 891 / 1,000 |
Additionally, review an insurance company’s claim settlement ratios, which reflect how often claims are paid out versus denied. If you are already with a good company, make sure to look into their claims process, so you know what to expect in the event you have to file a claim.
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What to Do With Auto Insurance Checks
If you own your vehicle outright, you can use your car insurance check to pay for its repairs or cash the check if you have already repaired the vehicle. If the check is made out for a total loss, you can cash it (Read More: How Insurance Companies Determine if a Car is Totaled).
Questioning what to do when an insurance check is written to me and the lienholder? When the vehicle is under lien, usually because it is financed by a lender, then the insurance check will usually be made out to the lienholder for a total loss.
In the case of a repair claim, some state laws, and many insurance companies require a two-party endorsement, and so the check will be issued to you but only endorsed to pay the repair shop once your lienholder is happy that the repairs are completed. Looking to find a new auto insurance company? Use our tool to get free, affordable quotes from companies in your area.
Frequently Asked Questions
Who does the insurance company write the check to?
In most cases, the auto insurance claim check will be made out to you, the policyholder. The insurance company will issue the check directly to the person who is named on the policy (Read More: What is an auto insurance policyholder?).
How do I cash an insurance check with a lienholder?
If you have a lienholder on your vehicle, such as a bank or a financing company, the insurance claim check may be made out jointly to both you and the lienholder. This is to ensure that the funds are used to repair or replace the vehicle and protect the lienholder’s interest.
Can the auto insurance claim check from the insurance company be made out to someone else?
In certain situations, the insurance claim check may be made out to someone other than the policyholder. For example, if you have assigned your claim rights to a third party, such as a medical provider or a legal representative, the third-party auto insurance claim check may be made out to them.
Make sure to have good auto insurance coverage to protect yourselves in these situations. Shop at reputable providers to find the best coverage (Learn More: What are the worst auto insurance companies?).
Why is the insurance check made out to me and the contractor?
If you have authorized a repair shop or a contractor to perform the repairs, the insurance company may issue the check directly to them.
What if I have a joint auto insurance policy with another person?
If you have a joint auto insurance policy with another person, the claim check may be made out to both policyholders (Read More: Best Joint Ownership Auto Insurance). This ensures that both parties have equal access to the funds and can make decisions regarding the repairs or replacement of the vehicle.
What should I do if the auto insurance claim check is not made out to me?
If the claim check is not made out to you and you believe there has been an error, it is important to contact your insurance company immediately. They will be able to provide clarification on why the check was issued to someone else and help resolve any issues. It’s crucial to address any concerns or discrepancies promptly to ensure a smooth claims process.
Can I cash my auto insurance claim check?
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. Before the insurance company releases the funds, both parties must endorse the check.
Do I have to repair my car with an insurance check?
When car insurance sends you a check for damages to your vehicle, you’ll typically cash it and use the money to pay your auto body repair shop. However, while many people choose to use the money to repair their cars, you can also opt not to repair the vehicle and use the funds for other purposes.
Note that this is only possible if you own your car outright. You will also have to pay your deductible, even if you don’t want to use the money for repairs (Read More: How to Pay Your Auto Insurance Deductible). If you’re leasing the vehicle or have a loan, your lienholder may impose restrictions on how the payment is used and might demand evidence of repairs.
Does insurance pay the body shop directly?
In some cases, insurance companies may pay the body shop directly for repairs to your vehicle. This typically occurs when you’ve selected a body shop that has a direct billing arrangement with the insurance company. Sometimes, the insurance check is made out to you and the auto body shop.
How does a lienholder endorse a check?
When a check is issued jointly to both you and your lienholder, the lienholder must endorse the check before it can be cashed out. The lienholder should review the check to ensure that it is issued correctly and matches the details of the insurance claim or settlement.
Then, they must physically endorse the back of the check, which includes signing their name and adding any additional information, such as the account number or a stamp indicating the endorsement is for deposit only.
Can I cash an auto insurance check written out to my lien-holder and myself?
If you are asking what to do if a check is made out to me and my lienholder, the process is usually simple. Cashing an auto insurance check with a lienholder typically requires both parties to endorse the check. Usually, the check is intended to cover repair costs or settle a claim related to the vehicle.
To access the funds, you’ll typically need to work with your lienholder to endorse the check and ensure that the funds are used appropriately, such as repairing the vehicle. the process might be slightly different depending on what company you are with, as how to cash an insurance check with a lienholder with Progressive may be different than with a Geico lienholder check (Read More: Geico vs. Progressive Auto Insurance Review).
Can you sign over an insurance check to a car dealership?
You can sign over a car insurance claim check to a car dealership if it is a third-party auto insurance claim check, but it typically depends on the circumstances and agreements between you, the car dealership, and the insurance company.
What is a two-party check from an insurance company?
A two-party insurance check is a check made out to two individuals or entities, typically the policyholder and another party, such as a lienholder or repair shop. The two-party insurance check endorsement must me made by both parties, often by signing the back, before the funds can be used or deposited.
Can I fix my own car with insurance money?
You can use insurance money to fix your own car, but you must ensure that your insurance policy covers the type of damage your car has sustained. Generally, full coverage auto insurance covers most accident situations.
Can a lienholder keep an insurance check?
A lienholder typically does not have the authority to keep an insurance check indefinitely. The purpose of an insurance check issued to both to you and the lienholder is to ensure that the funds are used to repair or replace vehicle. However, the lienholder will not endorse a check until the damage is professionally repaired.
Can a lienholder file an insurance claim?
If you have a loan or lease on your vehicle, the lienholder has a financial interest in the vehicle, and they may be named as a loss payee on your auto insurance policy.
In the event of an accident or damage to the vehicle, the lienholder may have the right to file an insurance claim to protect their interest in the vehicle.
Can I get a check instead of fixing my car?
Wondering “do I have to fix my car with insurance money?” Yes, you may have the option to receive an insurance check instead of using it to fix your car, but it depends on whether you have a loan or lease on the car (Learn More: Best Auto Insurance for Leased Vehicles).
First, you’ll have to make sure you satisfy any lienholder requirements. If the insurance check is made out to you and a finance company, you will have to use the money to fix your car.
Can you use an insurance check for anything?
If you receive an insurance check to cover the cost of repairing your vehicle after an accident, you’re expected to use that money for repairs. However, if you own your vehicle outright, you can just keep the check. You’re not technically required to spend the money from the car insurance checks to fix your car.
How to get a check from an insurance claim?
You should contact your insurance company to report the incident and start the claims process. The insurance company will assess the claim to determine coverage and liability.
If the claim is approved, your insurer will make a settlement offer, which may include compensation for property damage, medical expenses, or other covered losses. Find the best auto insurance rates no matter how much coverage you need by entering your ZIP code into our comparison tool today.
Why did my insurance company send me a check without making a claim?
It could be a refund for overpayment, a deposit rebate, a dividend payment, or reimbursement for a service covered by your policy, such as roadside assistance or rental car reimbursement (Read More: Do you get your deposit back from auto insurance?). If you’re unsure why your insurance sent you a check, it’s best to contact your insurance company directly before insurance check cashing.
How to endorse an insurance check?
Everyone named as a “payee” on the check must endorse the back of the check with their signature, matching the name as it appears on the front of the check.
Can I sign over the insurance check to a body shop?
Ensure that the body shop is authorized to receive the payment directly from the insurance company. Some insurance policies require specific authorization or approval in order to pay out a third-party insurance claim check. If you ask, your insurance company may have the insurance check made out to you and an auto body shop.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.