Filing an Auto Insurance Claim in Illinois

Reader’s Question:

My sister got into an accident here in Illinois and she’s okay now but too bad that she still has a loan on her car. She’s got collision coverage on her auto insurance and she already filed a claim to fix her car. Now, how can she get the payment for the repairs of her car?

Adrian

Mount Prospect, IL

If your sister still has a loan on her car, the procedures for first-party claims may cause an extra headache for her. This is because her auto insurance provider in Illinois would probably write out a check to her and her lender. So this would mean that she has to visit the bank or, even more annoying, mail the check to the finance company for their signature. No one can tell how much time it will consume for your sister to get back her fixed car; however, she has to expect to do some spadework. In case the lien holder’s name is also on the check, this would cause more trouble that they would have to inspect the car for them to endorse the check. For the check to be endorsed, your sister’s anticipation may probably take weeks.

Normally, your sister has to take the car to a dealership and have them sign a statement that the car has already been fixed. She should then send through mail the body shop’s bill and pictures of the repaired car to her lien holder. The bank or the lender would approve the check and return it so that your sister could pay for the repair. In case her lender is a local bank, she it may be necessary for a bank representative to inspect the car so that they will be assured that it was fixed.