Auto Insurance Question

[chubbyzook]

Four months ago my gf was in a traffic accident at the fault of another driver. The other drivers insurance agreed to pay for damages to her car and we took it to a shop of thier choosing. The shop said insurance would pay them directly and we would have nothing to do with any payment. The insurance company said the same. Car was fixed, released to us and no more dealing with either the insurance company or the shop that performed repairs. A month ago we recieved a check from the insurance company. We called and asked if we were supposed to pay the shop with it and were told no. So we cash it. Yesterday the shop called and said they never recieved payment and said we needed to pay. We then called the insurance company and they said they made an error by sending us the check and telling us its not for the shop. So i need to know if I should pay it or let them figure it out.

I have in emails from the both the insurance saying they pay the shop directly and the shop stating the same. And another email saying the insurance company made the error.

Anyine experienced any thing like this?

Thank you

 

[shortround]

The money sent to you was to pay to repair damages. If the repair was done to your satisfaction, and the check was sent to you by mistake, then you have a moral and ethical obligation to pay the shop that fixed the car.

Also, under State law, you have no obligation to take the vehicle to a shop recommended by the insurance company. If the vehicle is of recent manufacture (i.e. less than five years old), tell the insurance company you want compensation for "diminished value."

I'm not a lawyer and don't offer legal advice.

 

[zembonez]

Regardless of the mistake that was made, it's obvious that the money was not yours. It's not legal to simply cash the check and spend it. No different than the bank making a mistake in your favor... You'll need to pay up.

 

[chubbyzook]

Cool i just wanted to make sure i was getting scammed or something to that nature.

 

[Vaquero]

The statements above are valid.

 

[txinvestigator]

Also, if you fail to pay the repair shop they can place a mechanics lien on the car and take possession of it.