If you’ve recently received a check from your auto insurance provider that has your name and the name of a second party, this is known as a “two-party insurance check.” It can be very confusing, especially when you’re already dealing with a lot following a car accident. Don’t worry. We’re here to help and provide you with all the answers to the many questions you may have about two-party checks.

What is a Two-Party Insurance Check?

The only difference between two-party insurance checks and regular checks is that there are two names 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 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 totaled 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 some 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 the norm since 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 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 elsewhere, almost all insurance companies would provide a different check for that particular body shop. The amount simply needs to match the estimated amount, and you want to make sure it’s somewhere you trust.

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 Palmdale can I trust with my two-party insurance check? 

We at Telesis Collision Center have been serving the Antelope Valley for nearly 25 years. We know that this is a stressful time, and you’re probably loaded with different questions. We’re here to assist you throughout your entire repair process, including anything Insurance related!

If you’d like to schedule an estimate or get a free online quote, click any of the buttons below! Or, feel free to give us a call at (661)-274-2719. We look forward to hearing from you!

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