Michael P. McCready, personal injury lawyer at McCready Law in Chicago, says who receives the insurance claim check is crucial.Â  âWhen our office represents a client, the very first thing we do is send a letter of representation to the insurance company. This does several things, but most importantly, it requires them to include our firm name on any check. Without our name on the check, the client would be left to their own honesty to pay the lawyer. What happens in practice, when a case is settled, the settlement check will come to the lawyerâs office and made payable to the law firm, the client and perhaps any medical providers. "The lawyer will deposit the check in his or her attorney-client trust account to clear. The attorney will then disburse according to an agreed-upon settlement sheet, writing checks to the client, medical providers as well as a check to the firm for attorney fees and costs. Disbursement of client funds is highly regulated by State Bar Associations. Any deviation, even if inadvertent, can result in suspension of a lawyerâs law license. Proper accounting principles, good accounting software and a knowledgeable bookkeeper are worth their weight in gold,â McCready says.Â  If the check is made out in your name, it will be mailed directly to you. If your own insurer is paying the claim and you have a deductible, that amount typically will be subtracted from the amount of the check, says Lori Conarton, spokesperson for the Insurance Institute of Michigan. Once you receive the check, you have a couple of options. "If the check is made out to the policyholder, he or she can cash it or sign it over to the body shop," Conarton says. If the lienholder also is named on the check, the lender will have to sign off on it before you can use the money for repairs. That may require you to mail the check to the lienholder for approval, or to make a trip to the bank. In some cases, your insurer will simply pay the body shop directly for repairs. In these instances, you might not see a check at all. Some insurers prefer this method of handling claims, especially if you agree to have the work done at a body shop that has a special arrangement with the insurer. Musson says drivers can take their damaged vehicle anywhere for repairs. However, the process will likely be smoother if you take your vehicle to your car insurance companyâs preferred body shops.Â  âIn the best-case scenario, the body shop you would have chosen for yourself is also a preferred shop of the insurance company. The body shop can communicate directly with you and the insurance company and your insurer can pay the shop directly. All youâll need to do in this situation is to sign some paperwork and pick up your vehicle when itâs fixed,â Musson says.Â  However, you don't have to accept your insurer's choice of body shop if you would prefer someone else to do the work. "(If) theÂ policyholder would like another shop to perform the work, the insured should contact the insurance company adjuster to have the check reissued in the name of the new shop," Conarton says.