I know this from experience you can also ask (ImportMuscle) as I informed him of how to do it and he has done it also.
First off the collision shop has nothing to do with the check. It is the bank your brother has his loan through and your brother who are listed the check. The only way the bank will sign it is if the damage has been fixed be a registered repair facility.
Second option is to call the bank and tell them you do not wish to repair the vehicle, you would instead like to use the check to pay off the vehicle and have the remainder and the title released to you. So your answer is YES he can get the money and not get it fixed, but he does have to pay off the vehicle with it in order to do it.
Similar thing happened to me. Deer hit me. I got 3 quotes and submitted the highest quote. Insurance company asked me if I wanted the check or if I wanted them to pay the shop directly. I took the check and went to the place with the cheapest quote. The difference paid for my deductable. Jackpot!
Not sure what insurance he has, but I have Geico and they did this for me. When I had my 2500, someone in an Equinox backed into me at a gas station, and put a 4" crack in the plastic lower bumper. I took it to Schmitt’s and got an estimate (the guy was rather generous with the estimate, but thats beside the point), submitted it to Geico, and said that I was not sure when or where I would be getting it fixed, so they said no problem and cut me a check for the amount and i pocketed the money.
As 01audiS4 mentioned, normally the lien holder and the owner are both named on the check. This is so you don’t buy a 60K escalade, smash it into a building, get a check cash it for 30K in your pocket, then default on your loan, and they repo a truck worth 20K
you’re out good credit history, but up 30K. cha-ching.
As was already explained. If you pocket money for repairs, and maintain collision coverage afterwards, you are committing insurance fraud. If it was your own provider, they will not allow you to do this. If you have a lein, they will not allow you to do this.
If he did not have a lein, they would not care, if he didn’t attempt to continue to carry collision.