If you’re reading this, you probably just received a check from your auto insurance provider with your name and the name of a second party, both written on the check. This is known as a “two-party insurance check.” It can be very confusing, especially when you already have a lot going on following a car accident. Don’t worry. We’re here to provide you with all the answers to any questions you may have about two-party checks.

What is a Two-Party Insurance Check?

The one difference between two-party insurance checks and regular checks is that there are two names listed on the “Pay to the order of” line rather than one. It’s usually written out in one of the two ways listed below:

  • Party A OR Party B: If the word “or” is written on the check separating the two names, this means that either party can deposit the check into their bank account.
  • Party A AND Party B: If the word “and” is written on the check between the two names, both parties need to endorse the check in order for it to be deposited in either bank account.

Why are two names written on the check?

There are two possible reasons why insurance providers will put two names on a check. The first reason is it could be issued to you and the auto body shop. However, if the car is considered a total loss and you still owe money, then it would be you and your lien holder.

What can I do when it’s written to my lien holder and me? 

There are certain situations where you would be able to cash the two-party insurance check at the body shop your car is being repaired at. However, this is not something you’ll see happen often. Simply for the fact body shops don’t want to be held reliable if they lose the check. You can also get a signature directly from your lien holder so you can pay the auto repair shop directly.

If your car is a total loss or deemed totaled, the best possible option would be to use the check to pay off your loan. If you want to do this, send the check to the lien holder and ask that the entire proceeds go toward your loan.

What if the check is written to the auto repair shop and me?

When a two-party check is written between you and the body shop instead of you and your lien holder, this is most likely because you still owe money on your car. You’d be able to cash it by taking the check directly to the auto body shop that is written on the check. Even if you chose to go somewhere else to have your car repaired, almost all insurance companies would provide a different check for that particular body shop. The amount simply needs to match what is listed on the estimate. 

If there is an “and” between the names on the check, both signatures are required to cash the check. However, if there is an “or,” then only the body shop is required to sign so the check can be cashed.

What body shop in Philadelphia or Southern New Jersey can I trust with my two-party insurance check? 

We at Rocco’s Collision can give you quality collision repair with the most experienced team of technicians. We have several different locations across the Philadelphia and Southern New Jersey area. We know that this is a stressful time, and you probably have tons of questions. We’re here to assist you throughout your entire repair process from repair to delivery of your repaired vehicle! 

For a list of addresses and phone numbers of each one of our locations, click the contact us button.

To request an online appointment, click here to get started.

Or if you rather call Rocco’s Collision directly, feel free to give us a call at (888)-9-ROCCOS

We look forward to hearing from you and serving you!