Fixing car after insurance claim

rizdub

my friend's car was hit some months back and he got the money from insurance company after inspection and as per the mechanics estimates.

its an old car which could be worth just 500 more than the claimed money after its fixed correctly ( best case scenario).

Is there an obligation to spend all the money on fixing this old car which may not even sell for the repair amount spent?
Also does this car needs to be fixed by the same mechanic who prepared estimate?
whats the correct procedure here?

run_Forrest_run

I'm presuming the figure paid out to your friend came from an assessor who assessed the damage and the costs to repair.

Since your friend has received the money then I do believe he/she is allowed to do what they want with it. You can go to whatever mechanic you want to get it fixed. In the eyes of the insurance company the case is closed.

I may be open to correction here so don't take my word as gospel.

whomitconcerns

If he has the cash then he has been compensated. How he spends the money is his own choice

Mint Sauce

Although, wont he need an engineers report, to say repairs are satisfactory, before its re insured. That's assuming he plans to put it back on the road and drive it again.

endacl

He can use the money to fix the car. He can use it to fill the boot with jellybeans. His money, his choice.

Del2005

rizdub wrote: »

my friend's car was hit some months back and he got the money from insurance company after inspection and as per the mechanics estimates.

its an old car which could be worth just 500 more than the claimed money after its fixed correctly ( best case scenario).

Is there an obligation to spend all the money on fixing this old car which may not even sell for the repair amount spent?
Also does this car needs to be fixed by the same mechanic who prepared estimate?
whats the correct procedure here?

I assume this wasn't done through insurance as €500 more for the car than the repair would have been an economical write off. To answer your question they can spend the money on whatever they like, they have been compensated for the damage so that's the end of it.

Voodoomelon

I've also heard before that if an insurance company pays out in cash as opposed to directly to a repairer, the amount is less VAT.

whomitconcerns

It is less vat. As If they had paid the garage directly it would have been less vat

rizdub

Thanks all for your replies. it confirms my understanding that he is free to fix or sell the car.
Only query left is about VAT payment.
The solicitor first said, he will deduct the VAT but then sent the full cheque so I assume VAT has to be paid by the chosen mechanic or solicitor.

whomitconcerns

If there's a solicitor involved is a bit more complicated than you first said. Best to ask your solicitor as legal advice can't be sought here and you have just said it's a legal issue