Can you just keep cash from a car insurance payout and not fix your car?
It all hinges on your ownership status of the vehicle. If you don’t have full ownership, then typically, repair funds awarded won’t come directly to you; they usually go straight to your chosen repair shop.
Now, if you do own your car outright, you have the freedom to decide what to do with any insurance payout you receive. You can opt not to repair your vehicle due to financial constraints or delay repairs, utilizing the received funds as you see fit. In essence, you’re not obliged to allocate any of the compensation from your auto insurance company toward repairs.
Although you have the legal freedom to decide how to spend the insurance money, it’s essential to fix your automobile in order to preserve its value, guarantee safety, and maybe avoid issues with future claims or when you sell it.
@James you’ll likely need to sign documents stating the payout will be used for repairs.
Failing to do so could be considered illegal insurance fraud.
The insurance company may investigate how funds are used.