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What Can I Do With My Insurance Settlement Money?

Illustration of hands holding a vehicle in one hand and a dollar sign in the other to represent insurance settlement choices

Here’s a question we get asked from time to time at McCollum Auto Body: Do I have to get my car fixed after I get an insurance settlement?

Answer: Not always.

If you’re asking yourself, “What can I do with my insurance settlement money?” you may be pleased to discover that the answer is basically, “Whatever you want to do with it!”

However, like all discussions of accidents, insurance settlements, and the law, the full answer depends on where you live. It also sometimes depends on whether or not you own your vehicle outright.

So before you go off and buy every single gaming console out there (so you don’t miss any games, right?), let’s consider what you might do with that money instead.

Car Accident Insurance Settlement

If the damage to your car is minor, it can be tempting to spend the settlement money on other things. There are bills to pay, rent’s due next week, and you’ve been wanting to surprise your partner with an extended vacation somewhere far, far away.

But think of your insurance settlement amount as a return on investment. After all, you’ve been paying those car insurance company premiums precisely for situations like this: You’ve been in a car accident, you’ve made a car insurance claim, and you’ve received money after the insurance claims adjuster has determined whether your car can be repaired or if it’s a total loss.

Now, as we stated above, you can do whatever you want to do with that money. Perhaps you’re in a situation where you no longer need a car to get around. That’s certainly the case for some people. But it’s far more likely that you’re in the same situation you were before the auto accident — only now you don’t have a car!

There are other things to consider, too. Are there medical bills for personal injury that need to be paid? Was there any property damage? What’s the total amount of money necessary to square up your ledger? Is someone filing a lawsuit? Will you need to hire an attorney? Will the accident settlement offer suffice? How much money will remain from your accident claim to fix or replace your car?

McCollum Auto Body

Naturally, we can’t answer these questions for you — or provide legal advice. We also can’t determine the best course of action for you; you’ll have to figure that out for yourself, as well as understanding precisely what’s required from your specific insurance company. For example, some insurance companies send the check directly to the auto body shop rather than to the claimant.

If you need your damaged car repaired, then consider bringing it to McCollum Auto Body. We have four convenient locations, and we’re the absolute best in the business. We’ll get your car back to its pre-loss condition — and back on the road! — before you know it.

Contact us today! Let’s discuss options for you and your vehicle. We’re here to help.