What To Do With a Two-Party Check at an Auto Body Shop in Pennsylvania

Writing check

If you’ve recently received a check from your car insurance provider with your name and a second party written on it, this is known as a “two-party insurance check.” It can be very perplexing, especially when you already have a lot on your plate after a car accident.

Don’t worry any longer. We’re here to help and give you answers to any questions you may have about two-party checks. Let’s go into the most popular questions we get asked about two-party insurance checks: 

What is a Two-Party Insurance Check?

The one and 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 instead of one. This type of check can be written out in one of the following ways:

  • 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 or deemed a total loss and you still owe money, then it would be you and your lien holder.

What can I do when the check is written to my lien holder and me? 

There are certain and rare situations where you’d 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 often 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 (aka “total loss”), the best possible option would be to use the check to pay off your loan on the car. If you want to do this, simply send the check to the lien holder and request 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 vehicle. You would be able to cash it by taking the check directly to the auto body shop that is written on the check. If you’re wanting to have your car be repaired elsewhere, almost all insurance companies would provide a different check for that particular body shop. The amount just needs to match the estimated amount from the body shop. Not to mention, you want to make sure it’s somewhere you trust. This is just as important as the repair because you want to feel confident in whoever is repairing your car. 

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

We at 3D Collision Centers have set the highest standard when it comes to collision repair. All of our technicians are Gold I-CAR class certified, which is the highest level of certification that auto repair technicians can receive. We work with ALL insurance companies and will work with YOU on ensuring your repair is as smooth and stress-free as possible.

We have 7 different locations across Chester, Montgomery, and Delaware counties. Feel free to give us a call for any of our collision or towing services at any one of our locations. Our number is (877)-692-7776. Or, if you’d like the direct number to any of our 7 locations, click here.

We look forward to hearing from you and showing why we are the best Pennsylvania has to offer!