When the Claim Check Comes and You Have Nowhere to Deposit It

Paying a premium without a U.S. bank account is a solved problem for many people. Receiving money is the part that surprises them. A claim check arrives with your name on it — sometimes with a second name next to yours — and the store that sells you money orders will not cash it. Here is how to plan for that moment.

Who the payment is made out to

A lender is named because it is listed on your policy as lienholder or loss payee. It has a legal interest in the car until the loan is paid, and two-party checks exist to protect that interest.

The timeline the rules set

Once the company accepts a claim, California's claim regulations give it 30 calendar days to pay (title 10, section 2695.7(h)). On a total loss, the settlement must be based on the actual cost of a comparable car, include applicable taxes and one-time transfer fees, and be itemized and explained in writing when the offer is made (section 2695.8(b)). Use that written breakdown to check the number before you sign anything.

Options without a U.S. bank account: what usually works

• Direct payment to the repair shop. If the car is being fixed, this removes the check from your hands entirely. You pay the shop your deductible.
• Ask what payment methods the company offers. Some offer electronic payment options besides a paper check; this varies by insurance company.
• The bank the check is drawn on. The check's own bank may cash it for a non-customer with identification. Whether it will, and which IDs it takes, is that bank's policy, so call first.
• Opening an account. Banks and credit unions decide what identification and taxpayer numbers they accept for a new account. Ask specifically about an ITIN, a passport or a consular ID before you go.

The name on the check must match your ID

If your name is spelled one way on the policy and another on your license, the check will follow the policy, and a bank may refuse it. Ask the adjuster to confirm the payee name before the payment is issued. A reissued check is a delay measured in weeks.

What not to do

• Do not sign a check over to someone who offers to "handle it" for a fee.
• Do not try to deposit a two-party check without the lender's endorsement.
• Do not accept cash from the other driver in place of a claim without a written, signed agreement describing what it covers.
• Keep a photo of the front and back of every check and every settlement letter.

If you are setting up a new policy and want the payment side to be simple from the start, ask for a quote here and tell us how you prefer to pay and be paid.