Why does the check need to be payable to the body shop or the lien holder?
Once your insurance company is put on notice that a policyholder’s vehicle is subject to a lien, they are required to protect both the policyholder’s interests and the legal title holder’s interest in ensuring the vehicle is in its pre-accident condition. Therefore, you have a choice to have the insurance company adjuster make the check out to you and the body shop or you and the lien holder. These checks will require both party’s endorsement.
