Auto Insurance Claims: settlement check, lienholder on check

Question
Car got hail damage and i have american family insurance.  my agent said that the check will be made out to myslef and my lien holder and i can use the check for whatever i want but its up to my bank that financed my car (chase) to let me cash it or not.  Is there a legitimate reason I can tell chase what the check is for that they will accept?  Since my insurance agent says the money can be for anything.

Answer
James,

  I cannot advise you to tell Chase anything but the truth.  Chase still has a financial interest in the vehicle and if they are listed as the loss payee on the policy, then they indeed have a say in what the proceeds are used for.  Your agent should not advise you of such things as the agent is likely not a licensed adjuster or an attorney and probably has not memorized your loan agreement with Chase.  

  Your agreement with Chase dictates what you can do with claims checks until you have your vehicle paid off, and normally that means you either have to fix the damages, or apply the proceeds of the check to the balance on the loan.  Sometimes, a bank will just endorse a check and send it back to you if you send them a letter asking them to.  If you don't intend to repair the damage, simply be silent on the issue and see what they do.

JP