Body work not done

[325Falcon]

One of our cars that will be going back to the bank has some minor body damage that we recieved insurance money for but did not get repaired.

Is this going to be a BIG issue when they take the car back? Is it insurance fraud?

[wingnut]

Doubt it...

Hey,

Here is my personal understanding, not legal advice:

As long as you didn't lie during the claims process, it is not fraud. However, if your auto loan stipulates that the car must have comprehensive coverage, you'll be on the hook for the damages.

Basically, the insurance claim is to compensate the owner for damages in the accident. Since it is your car, and your money, it is up to you if you want to put money back into the car, or somewhere else. How you spend your money is your business.

However, if that car is collateral for a loan, and is becomes damaged, it is on you to repair the collateral. If the collateral is damaged when they repo it, they'll probably repair it in-house and charge up the wazoo for that. So, you MIGHT want to repair it on your own, either w/ friends or the best of 3 shop estimates.

But, if you're declaring Ch 7 BK, that debt would probably be knocked out, either way. Ch 13, it would be added to your agreement.

Long story short, the insurance settlement is to compensate the owner for their losses. How the owner spends that $ is up to them. If the owner breaches the contract of a loan that uses that car for collateral, the lender can add the cost to repair the collateral to total debt.

Once again, although I've seen this happen many times, this isn't based on legal advice. Find a copy of the loan contract, it probably discusses this matter.

GOOD LUCK,

WINGNUT

[325Falcon]

Great input! Thanks