clock December 9, 2014 comments No Comments flowchart Automobile InsuranceOur Blog tag

Auto Insurance RI

If you have a loan on your vehicle or if you lease your car, you should know that your bank (the institution that loaned you the money for the car) will be involved if you have to file an auto insurance claim for your car.

For example, let’s just say that you were involved in a car accident. Thankfully you were not injured, but your car sustained some damage. So you filed a claim with your auto insurance RI company, the appraiser came to look at the damages, and then you received a check from your insurance company for the total cost of the damages (minus your deductible). However, the check is made payable to you and your bank.checkbookcontrol

Why? Because when you have a loan or lease on the car, the bank still has a financial interest or ownership in your vehicle. Your car is essentially collateral for your loan. The leasing company or lienholder has an interest in making sure the money for your accident is used to repair the car and not used for something else.

If you receive a claim check with your bank’s name on it, you will need to contact the financial institution listed on the check for a signature. The procedure for obtaining this signature will be different depending on your particular bank. Some institutions, such as your local credit unions, are usually able to sign the check in-person fairly quickly. Others may require you to mail the check to them for signature, and you will have to wait until they return the endorsed check back to you.

If you have any questions regarding an insurance check you receive, or if you have any other questions regarding repairs to your vehicle, visit us online or call us at (401) 723-8510.

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