Auto Insurance Claims: Finance Company and hail damage, hail damage, insurance check

Question
QUESTION: Recently received hail damage to a used vechile I just purchased.I haven't made my first loan payment(due in another week).The insurance check was printed out to the finance company and me.I took the check to the finance company to get it endorsed but they wouldn't endorse it till I got it fixed and bring back the invoice.Does it make any sense?Then he made the suggestion that if any money is left over (which should be a good bit)it could be applied to the loan.

ANSWER: Hi Chris,
It is normal that the check be made jointly to you and the lender when the damaged car is being financed.  Your insurance has an obligation to the lender to protect their interests.  If the check had been made to only you and you had cashed and spent it instead of repairing the car.  If the lender had later repossessed the car with hail damage, your insurance company would have had to pay the lender for the hail damage (a double payment on the part of the insurance company).  So, this method of writing the check is to make sure that the repair work is done.
It would be rare if any money is left over after the repairs are done.
If there is, I see no legal way that the lender is able to keep it and apply it to the loan balance.

I hope this information has been of help.  
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area

---------- FOLLOW-UP ----------

QUESTION: Is it normal for the lender to tell me to go ahead and get the work done and they endorse the check after the repairs.Who is suppose to pay?I hope not me when there is a check waiting to be used for the repairs.What repair shop lets you drive off without paying for the work? I think my lender is trying to pull one over on me.
Do they need(lender) to see the estimates that I go out and get.He viewed the damages himself when I went to go get the check endorsed and he would not endorse it.I am going to get the repair work done. I just got the car it would be silly of me to ride around in a new car with noticeable  damages.Also, I am going to call my insurance agency and tell them about the situation.

Answer
Hi Chris,
After you have gotten the estimate from the shop that you are going to use, show them the check and see if they are willing to await payment until after repair is done and the lender signs off on the check.

If they are not willing to do this, then the next best choice that I see is to take the estimate back to your insurance company and have them write a check made payable to you and the repair shop.

Sincerely,
Bennie