Auto Insurance Claims: Hail Damage Check To Me? or Bank?, hail storm, hail damage

Question
Hello
We recently had a hail storm hit in the state of AZ and a lot of damage was done throughout the state. I contacted my car insurance which is through state farm to seek coverage for the damage that was done to both mine and my husbands vehicles. I drive a 05 Camry which i bought for 11k-14k after taxes ( it had 82k miles on it ) and my husband has a 99 Ford extended cab that he uses for work. we are set up to have someone estimate the cost of damage received from the hail storm on 10/29/10. My question to you is, if I am currently paying on my loan.. ( I still have two years on my car loan ..$8357.86 to pay off) is it likely that the insurance will cut me a check for whatever amount...and me not be able to have the choice to cash the check to use as funding toward repair ..or cash the check for whatever reason i choose ..because i am still currently paying on my loan. Does the bank that processed my loan have the authority to distinguish where that estimated check amount goes to?  

Answer
Hi Lea,

When you have a loan on a vehicle, the leinholder is listed on your policy as an additional insured. By law the insurance company is required toprotect the interests of the lienholder. Any claims paid must be paid either to you and a body shop that is actually repairing the vehicle or you and the lienholder. If the check is made out to you and the lienholder then you can not cash the check unless the repairs are completed and you take the vehicle to the lienholders office. Once they can see the repairs were completed then they will endorse the check for you to cash in order to pay the body shop. Another alternative would be to sign the check and give it to your lienholder who would then apply the money to the balance of your loan. These are the only two options.

I hope this helps
Richard Hixenbuagh