In Missouri, whether you can keep money from a car accident insurance claim depends on who owns the damaged vehicle, what the payment is meant to cover, and whether any other party has a legal right to a portion of the funds.
For property damage, if you own your car outright, you can generally keep the insurance check and choose whether or not to repair the vehicle. For injury settlements, most of the money is yours to keep after any valid medical liens or reimbursement claims are resolved.
This article explains how each type of payment works, who else may have a claim on your settlement, and how an experienced Missouri car accident attorney can help you keep as much of your compensation as possible.
Can You Keep Your Property Damage Check If You Own the Car?
If you own your car outright with no loan or lease, the property damage check is generally yours to use however you want. You can delay repairs, skip them entirely, or put the money toward something else.
That said, not repairing your car comes with real risks:
- Lower resale value: Unrepaired damage reduces what your car is worth if you sell or trade it, which can also affect a diminished value claim.
- Safety concerns: Structural or mechanical damage can make your vehicle unsafe to drive.
- No double recovery: If the same area is damaged again in a future accident, the insurer will not pay for pre-existing damage a second time.
What Happens to the Check If Your Car Is Financed or Leased?
If you have a car loan or lease, your lender has a financial interest in the vehicle. This means the insurance check is usually made out to both you and the lender, or paid directly to the repair shop.
Your loan or lease contract almost always requires you to repair the vehicle. Here is how that typically plays out:
- Joint check: The insurer lists both your name and your lender’s name on the check, so both signatures are needed to cash it.
- Direct shop payment: Some insurers pay the body shop directly to make sure the money goes toward repairs.
- Proof of repair: Your lender may ask for photos or invoices showing the work was completed before releasing the check.
Skipping repairs on a financed car can violate your loan agreement and may trigger a demand for immediate repayment.
Can You Keep the Money If Your Car Is Totaled?
A total loss is when the cost to repair your car exceeds its value. When this happens, the insurer pays you the actual cash value of your vehicle, which is what your car was worth right before the crash, and takes ownership of it. That payment is yours to keep and use however you choose, including buying a replacement vehicle.
Missouri also gives you the option to keep your totaled car. This is called salvage retention. If you choose this route, the insurer reduces your payout by the car’s salvage value, which is what the wrecked vehicle is worth as scrap or parts.
How Salvage Titles and Inspections Work in Missouri
A salvage title is a new title issued by the state for a vehicle declared a total loss.
If you keep your totaled car, you must apply for a salvage title through the Missouri Department of Revenue.
Before the car can legally return to the road, it must be repaired and pass a rebuilt vehicle inspection conducted by a state-authorized inspector. Only after passing that inspection can the car be re-titled and driven again.
Can You Keep a Bodily Injury Settlement?
A bodily injury settlement is money paid to compensate you for the physical, financial, and emotional impact of your injuries. This is separate from any property damage payment. What you can keep depends on what each portion of the settlement is meant to cover.
Most settlements are broken into categories:
- Medical expenses: This portion covers your hospital bills, physical therapy, prescriptions, and other treatment costs. It is also used to reimburse anyone who paid those bills on your behalf, such as your health insurer or MedPay carrier.
- Lost wages: This money is yours to keep. It replaces the income you lost while you were recovering and unable to work.
- Pain and suffering: This is also yours to keep. It compensates you for the physical pain and emotional distress caused by your injuries.
- Future medical care: If your doctor expects you to need ongoing treatment, this portion is set aside to cover those future costs.
After valid reimbursement claims and liens are resolved, the remaining settlement money belongs to you.
Who Else Can Claim Part of Your Settlement?
This is one of the most surprising parts of the settlement process for many accident victims. Several parties may have a legal right to a portion of your money before you receive it.
Two terms are important to understand here. A medical lien is a legal claim placed on your settlement by a hospital or doctor who treated you. Subrogation is the right your own insurance company has to be paid back from your settlement for any medical bills it covered on your behalf.
| Who Has a Claim | What They Want Reimbursed | Can It Be Negotiated? |
| Health Insurance | Medical bills paid on your behalf | Often yes |
| MedPay Carrier | Medical costs covered under your auto policy | Sometimes |
| Hospital or Doctor | Treatment provided on a lien | Often yes |
| Medicare or Medicaid | Government-paid medical expenses | Yes, through a formal process |
| Car Lender or Lessor | Outstanding loan balance if car is totaled | Limited |
The good news is that an experienced Missouri car accident attorney can negotiate many of these amounts down. Reducing what goes to lienholders and insurers means more of the settlement stays with you.
Is a Missouri Car Accident Settlement Taxable?
Under federal and Missouri tax law, compensation you receive for physical injuries and related medical bills is generally not taxable. You do not owe income tax on money that covers your medical treatment or pain and suffering.
However, not every part of a settlement gets the same treatment:
- Punitive damages: These are taxable. Punitive damages are awarded to punish a defendant for reckless behavior, not to compensate you for a loss.
- Interest on a settlement: Any interest that accrues on your settlement before it is paid is typically taxable.
- Lost wages: Compensation for lost income may be taxable because it replaces wages that would have been taxed in the first place.
Because tax rules can be complicated, it is worth speaking with a tax professional about how your specific settlement is classified.
How Insurance Companies Try to Reduce What You Keep
Insurance companies are for-profit businesses. Their adjusters are trained to settle claims for as little as possible, and they use specific tactics to do it.
- Lowball early offers: They may offer a quick, low settlement before you understand the full extent of your injuries or future medical needs.
- Recorded statements: Adjusters often ask for a recorded statement and may use your words to argue that your injuries are minor or that you share fault.
- Delays and paperwork: Dragging out the process with repeated document requests is designed to wear you down and push you toward accepting less.
- Disputing your treatment: They may claim certain medical care was unnecessary or unrelated to the crash to avoid paying for it.
You are never required to accept the first offer an insurance company makes. In fact, the first offer is almost never the best one.
How Beck and Beck Helps You Keep More of Your Settlement
At Beck & Beck Missouri Car Accident Lawyers, we have focused exclusively on Missouri auto accident cases since 1990. We are a family-run firm, and we handle every case personally. We have helped numerous clients obtain fair compensation by ensuring insurance companies do not shortchange the people we represent.
We know that after an accident, the last thing you need is more stress. That is why we take on the legal work so you can focus on recovering.
Here is what our skilled car accident lawyers do for you:
- Negotiate liens and subrogation claims to reduce what gets taken out of your settlement before you see it.
- Calculate the full value of your case so you never accept a settlement that leaves future medical costs uncovered.
- Handle all communication with insurers so adjusters cannot use your words against you.
- Work on contingency, meaning you pay nothing unless we win your case.
We serve accident victims across Missouri, including in St. Louis, Kansas City, Springfield, Columbia, Kirksville, and Cape Girardeau. Contact us today for a free consultation.
Frequently Asked Questions
Who Will My Property Damage Check Be Made Out to in Missouri?
If you own your car outright, the check is typically made out to you alone. If the car is financed or leased, the insurer will usually include the lender’s name on the check as well.
How Long After a Settlement Do You Receive Your Check in Missouri?
After you sign the release, you should receive your settlement check within a few weeks, though the exact timing can vary. Resolving outstanding medical liens can sometimes extend that timeline.
Can You Cash a Settlement Check If You Have Medical Liens?
Valid liens must be resolved at the time of disbursement. Ignoring a lien can result in legal action from the provider or insurer that holds it.
Can Skipping Car Repairs Hurt a Future Missouri Insurance Claim?
Yes. If you do not repair existing damage and the same area is damaged in another accident, the insurer will reduce or deny coverage for the pre-existing damage.
Can You Request Cash Instead of a Direct Shop Payment in Missouri?
If you own your car outright, you can usually ask the insurer for a cash payout instead of a direct payment to the repair shop. If the car is financed, your lender’s requirements will control how the money is handled.
