Reply to Is it dishonest to use insurance payout for something else?

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Reply to "Is it dishonest to use insurance payout for something else?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why do people ask dumb questions like this?!

The Insurance company insured an event.  The event happened and the company paid out per the terms of the agreement.  It's upto the owner to do what he pleases with the proceeds.  Why is that difficult to understand?

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It's not dumb because as was pointed out, the answer is different if the car is paid off vs if it is financed. [/quote]
There is no clause in a typical finance agreement that forces the repair. I never repaired any cosmetic damage on mine, only made it drivable.[/quote]

It's not in the finance agreement. The financing institution is typically listed as a loss payee on your car insurance. So while they may not have found out about it, you were supposed to get it repaired because you are not the owner, they are. And that's their money. [/quote]
Maybe it's different from state to state, but financial institution is not listed on my insurance (loan, not lease). 
If I total the car, I would be still on the hook for the loan. If I stop paying and bank repossesses the car then I still might be on the hook for the delta between the car value and what I owe (depending on potential  negotiations). In a case of no fault accident, the other insurance will pay for the half of the damage, and nobody can force you to repair with your own money.[/quote]

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