"Show me the money" is what you might say when an insurer pays to repair your car after an accident. After all, the insurer owes you the cash. However, the company might write you a check and tell you to "share the money." Who receives the claim-payment check often depends on who caused the accident.

First-party claim payments
If you get into an accident and have collision insurance, your insurer will pick up the repair bill after you've paid your deductible. This is known as a first-party claim situation. In first-party claims, your insurance company has the right to pay whomever it deems necessary to settle your loss, subject to state insurance regulations. For instance, if you own your car, your insurer might issue a check made out to you and the body shop you've chosen to repair your car. However, some states, such as Massachusetts, have instituted a "direct payment plan" under which the amount of the claim will be paid directly to you and you can then use those funds to pay for work done at the repair shop of your choice.

Those darn car leases
Car leases and loans can throw an extra wrinkle into the first-party claims-paying process because your insurer will likely issue a check made out to you and your leaseholder or lienholder. That means you have to go to the bank or, even worse, mail your check to the financial institution for its signature. There's no telling how long that can hold up the return of your fixed vehicle, but count on doing some extra legwork.

When a lienholder's name is included on the check, it creates the burden of having the lienholder examine the vehicle in order to get the check endorsed. It can take weeks to get the check endorsed

Third-party claim payments
If someone else smashes into your car and his or her insurance company is paying for the repairs, you are a third-party claimant. This is typically less of a hassle than first-party claims because you have no obligation to that insurance company. The insurer can't dictate to whom it pays the money because it doesn't have a policy contract with you. In most third-party claims, insurers pay the claimant directly.

If your vehicle has been totaled in a third-party claim situation, the at-fault party's insurance company will likely pay only you. Of course, if you have a lease or a loan, it's your responsibility to make sure your creditors get the money you owe them.