Explore the many places you can cash an insurance claim or settlement check near you.
It is important that you understand the process to go about this first before visiting the nearest check cashing agent. First, let’s briefly explain what an insurance settlement check is.
What is an Insurance Settlement Check?
An insurance settlement or claim check is the check paid to the beneficiary after successfully qualifying for compensation.
Checks are transactional methods that come in handy when a corporate deals with an individual or other corporate.
For example, if your car insurance company agrees to refund you cash for the damage to your car, they may write you a check. Now, how are these checks cashed?
Insurance Check Cashing Laws
The process of cashing insurance settlement checks is governed by rules and regulations that may differ slightly from those of other types of checks.
After a customer has made a settlement claim, the insurance company writes a settlement check that should ordinarily be cashed right away.
However, in most cases, there are things one must look at, and they include:
#1 The arrangement between the insurance and the customer:
There are cases where the insurance company may have to pay for the services or commodities directly without involving their customer.
For example, for car insurance claims, the insurance company may have to pay the mechanic directly for the expenses incurred while repairing the car, or there may be an arrangement where the insurance claim writes the check to the customer for them to ash then pay the mechanic for the repairs they did.
Car Repairs are Covered by Insurance#2 The arrangement between the customer and the lienholder:
In car insurance, the insurance policyholder may be owning a car on leasehold, or they may still be servicing a loan. In such situations, the insurance may have to factor in the authorization of the lienholder.
How to Cash an Insurance Check – Large & with Lienholder?
At the onset, you should note that the process followed when cashing a check will depend on the policies or terms of the organizations involved.
As stated earlier briefly, there is a need to have a clear understanding of the process that is to be followed.
The steps to follow when cashing an insurance settlement check are:
#1 Contact the Bank or Mortgage Company
It is essential to contact the companies you are dealing with so that they outline and clarify the conditions for cashing the check.
Through such correspondence, the bank or mortgage company will be informed of the status of the check (settled) and the rightful payees
#2 Check endorsement
It is vital that you endorse the check. The company should also endorse the check.
In addition to these, any other beneficiary listed must also endorse the check. Such beneficiaries include life or business partners.
After the endorsement on your part, the check should then be forwarded to the relevant financial institution for approval on their end
#3 Depositing Insurance claims check
After endorsement, you should then deposit the check with the financial institution involved (i.e. bank or mortgage company)
#4 Wait for Check Clearance
If you have finished the above steps, then all you need to do is wait for the banks to do their thing.
Once the check has been cleared, and as the case may be, you can cash the check. Or in cases involving repairs (e.g., houses or cars), you can give it to the contractors.
Where to Cash Insurance Checks – 5 Places
Now let’s discuss where one can cash insurance settlement checks, with a lienholder, without a bank account, or cheaply.
Just like most other checks, insurance checks can be cashed in many places. This list is a summary of the many places one can achieve this objective.
#1 Walmart Insurance Check Cashing
Walmart stores provide one of the best places one can cash their insurance claim checks. The stores are so prevalent in the US that over 92% of the US population lives within 20 minutes range from the stores.
The cashing fees here are clearly outlined as $8 for any amount higher than $1000. However, one should note that the daily limit at Walmart is $5000
WellKeptWallet notes that if you wish to cash the checks your check for Walmart MoneyCard, you can still do it at any one of the many Walmart store outlets.
#2 Local grocery stores
In most cases, grocery stores are unreliable check cashing spots. As such, one should make an effort to confirm with the relevant stores.
Also, some stores may discriminate against clients based on whether or not the checks are typed or handwritten.
#3 7-Eleven
7-eleven gas stations are the most reliable gas stations that cash insurance checks. The only trick involved here is that one must download the app called Transact by 7-Eleven.
The money is then deposited on the Debit MasterCard which you can use to withdraw the cash from any ATM supporting the same.
#4 Using Apps
If you want to cash an insurance check without a bank account, I would recommend using apps such as PayPal and Ingo Money.
#5 NetSpend
In NetSpend, the balance is loaded onto a prepaid debit card that one can withdraw through an ATM near you.
It should be noted that NetSpend supports online check-cashing
FAQs on Cashing a Settlement Check
Here are the commonly asked questions on cashing an insurance claim/settlement check that you need to know about.
You can also add a question in the comments section and we would get back with a well-researched updated reply.
Does Walmart cash settlement checks?
Yes, Walmart accepts insurance settlement checks subject to the existing check-cashing policies and conditions.
How can I cash a settlement check without a bank account?
It is okay to want to know where one can cash checks without a bank account, or without bank endorsement.
Well, as highlighted here above, if you don’t have a bank account, you can always cash checks using apps such as Paypal and Ingo Money.
Home Insurance Claim check cashing
The process of cashing a home insurance claim is similar to that of cashing car insurance. All you need to do is visit the nearest check cashing company, retail store or bank, and confirm the requirements for cashing it.
How to cash insurance check with a mortgage company
As already stated under the insurance check cashing laws section, checks may be handled differently if involve a lienholder.
In this case, the mortgage company would be the lienholder, and the relevant procedures would have to apply.
How to cash an insurance check with two names on it.
If an insurance check has two names, then most likely, one is the insurance policyholder and the other one is the lienholder.
Therefore, the lienholder check cashing procedures would have to apply.
READ MORE: How to cash a check at the Bank of America
