How to Cash a Diminished-Value Check

If you are not happy with the amount, request that the amount of your diminished-value check be reviewed.

A diminished-value check originates when you sell your car after the vehicle has been involved in a fender bender. You have the car repaired to its pre-accident state and all seems well. Then you discover that your sales price is lower because of your accident. In some states, you can request that your insurance company or the insurance of the party involved in the accident reimburse you for the difference of the amount your car would have sold for. Do not cash the diminished-value check until all claims are settled.

Difficulty:

Moderate

Instructions

Things You'll Need

• Valid state identification
• Valid secondary identification

Deposit the Check

1. Complete a deposit slip for your bank. Note the check number and amount. Write your account number clearly and double-check that the number is written correctly.

2. Sign the back of the diminished-value check. Write your bank account number underneath your signature, and be sure to only write where indicated.

3. Take the deposit slip and signed check to the teller window and make your deposit. Keep your receipt.

   Once you deposit the check, this informs the insurance company that you accept the diminished-value amount in full.

4. Wait between five and seven business days for the funds to clear.

At a Branch Bank

1. Find the bank the check is drawn under. The bank name is printed on the left-hand side of the check. Determine if there is a local branch of the bank near you. Contact the bank to ask if they cash checks for non-account holders.

2. Bring your diminished-value check and two pieces of identification to the bank. One must be a valid government identification, such as a state driver's license, military identification card or passport. A secondary form of identification, such as a work identification card or school identification, is also required.

3. Tell the teller you wish to cash your check. Indicate you are a non-account holder. Many banks assess non-account holders a fee to cash checks. Inquire about the fee amount. An imprint of your thumb is required on the check. Your identification information is recorded on the check by the bank teller.

4. Receive your cash. By receiving the money you are telling the insurance company you accept the offer and the claim is closed.

At a Check-Cashing Facility

1. Take your diminished-value check and two pieces of identification to a check-cashing agency. One must be a valid government identification, such as a driver's license, passport or military identification card. You must also provide a secondary identification, such as a work or school identification.

2. Tell the cashier you wish to cash a check. You may be required to become a member of the check-cashing facility to cash your check. Complete an application form, providing your address, telephone number and place of employment (if applicable). A membership fee may be charged. A membership card with your photo must be used each time you wish to cash a check.

3. Sign the back of your check. The clerk records your identification information on your check. The facility assesses a service charge to cash your check. This charge ranges from $2 to $10, depending on the amount of your check.

4. Receive your cash. Accepting the money means that you accept the diminished-value amount offered to you by the insurance company.

Tips & Warnings

• Banks are not required to cash checks for non-account holders. Contact the bank beforehand.

References

• Consumer Collision Services: FAQ: #5: Should I cash the diminished value check now or wait until I get a better settlement?
• Diminished Value Of Georgia: FAQ: #6: I already cashed my Diminished Value check, what happens now?
• Insure: Car Insurance: Car Insurance Claims: "Diminished value" car insurance claims get the wrecking ball: Your car + accident = diminished value
• US Department of the Treasury: FAQS: Bank Account:s: Check Cashing: #4: I went to a bank to cash a check that was drawn on the bank. I do not have an account with the bank and they refused to cash the check. Can it do this?