When an insurance company sends a payment check after an accident, weather disaster or any other event that causes damage to a vehicle it is always a good idea use the initial payment. More or less every insurance agent in the employ of a driver will tell them you the same thing. Even if the amount is lower than expected, or the amount seems to be incorrect or lower than a driver expects, depositing the initial check or using it for repairs is always a good idea. Insurance companies can be notoriously fickle when it comes to issuing a payment check and drivers are advised to cash the initial check before the other driver’s insurance company can change the terms, or even worse, cancel the check entirely.
While it may seem imprudent to accept the initial check by depositing it, many drivers will find out the hard way that a second payment may never arrive. If an opposing insurance company disputes some or all of the payment, drivers may be locked into waiting for months or years before they receive the whole or expected amount on an insurance claim. Fender benders, parking lot scrapes, casual auto glass damage are all often disputed by insurance companies. Nearly any accident that has a “no fault” outcome or lacks a police decision stands a good chance of being disputed, but a portion of a payment will often be sent out immediately.
Insurance agents across the country will tell drivers the same thing, especially in a situation where a claim is disputed or no fault can be determined. When an insurance company sends an initial payment, drivers are almost always encouraged to take the payment and use it for repairs or auto glass replacement or other installations. If the damage is auto glass specific, sometimes the insurance company will simply settle for a negotiated payment, leaving a driver free and clear as far as a deductible or other payment.
No one thinks that insurance companies are actively out to cheat customers. The fact is policies and insurance related disputes can take a significant amount of time and be fairly distressing to drivers who haven’t dealt with it before. When insurance adjusters determine an initial sum, it can be difficult to change that estimate. Most insurance agents on the side of a driver will always tell them to cash the check the other drivers’ insurance has tendered.