Auto Insurance Claims: accident, insurance check, vehicle insurance

Question
Can the lienholder request the vehicle insurance company to not authorize repairs to vehicle because the account balance (on the car)was not current at the time of the atcciden? My son's car is on my policy as "multiple car." On 3/18/10 I backed into it while it was parked. When my son reported the accident to the lienholder they contacted the insurace company about releasing payment for repairs to them. car Although the car is @ the body shop since since 4/19/10,repairs have not begin.

Answer
They cannot tell them not to authorize repairs.  But they can insist that the payment be made copayable to the lienholder and the owner.  This protects them to ensure the vehicle is repaired.  The vehicle is collateral on the loan and they need to make sure their collateral is repaired.  It is very common for people to cash an insurance check and not repair their vehicle shortly before it is repossessed.  This is how they try to prevent it from happening.