How To Cash an Insurance Settlement Check

While cashing an insurance settlement check is not all that hard to do, there are some things you absolutely must do to make it an easy transaction.  Every company will have its own requirements; often it will depend on the situation as to what will be required.  If you do not follow their rules, you will end up having to wait before the money is actually in your account or hands.

  • One of the most common requirements you will come across will be to have any and all owners of the item you are filing for endorse the check, or sign an affidavit.  This means if you were in a car accident, and you are still making payments on the car, you may have to go to the bank that holds the loan and have them sign off saying the work was done, or the check may actually be made out to you and the bank. 
  • Another requirement in cashing an insurance settlement check may be to have the contractor that did the work sign off, or again, the check may be made out to both you and the contractor, or even to you, the contractor and the bank. 
  • Sometimes the insurance company will require the title to a vehicle, if the vehicle was considered to be a total loss, before even issuing a settlement check.

It will really depend on what the insurance claim was for to determine just how to go about cashing any settlement check.

  • If the settlement is to have something repaired, the check may go straight to the contractor. 
  • There are checks available for replacement value of items stolen; they may require a police report, and you may have to show quotes to have the item replaced.  
  • If the check is for lost wages due to an injury, there will most likely be a doctor's note required and a note from your company stating that you are not working. 

It can be very frustrating to deal with an insurance company, but it cannot be stressed enough to call and talk to your agent before starting any claims.  Make notes and be very clear on any instructions the agent gives you on the process for cashing an insurance settlement check.  Ask questions, follow all the requirements, and you will have the money you are owed much easier than if you had simply done as you wanted.  You could end up owing more money than you get in the settlement if you do not do what they ask.


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