Typically what happens is that you take your car to the repair shop and the insurance company pays them for the repairs and you are then able to go pick up your vehicle when the repairs are done.

Many insurance companies handle claims in this manner. Most states insurance laws note that you do not have to use the body shop that the insurance company recommends so if you are unhappy with the one that they are have referred you to, you likely can request to get an estimate and repairs done elsewhere.

For example the California Department of Insurance in fact states that when an automobile is damaged by collision, vandalism, theft, or fire, a consumer must decide where to take the automobile for repairs. Some insurance companies maintain lists of "preferred" auto body repair shops, which the insurance company might recommend the consumer use. The consumer has the choice of whether or not to use an insurance company’s preferred shop.

The Florida insurance regulatory site says that you have the right, based upon your contract, to select the repair shop to repair your automobile after an accident. If you choose to use a repair shop recommended by the insurance company, the insurance company usually guarantees the completed repairs.

The insurance company making the check out to the repair shop is a normal practice nowadays. It can be helpful so that if the repairs go over the estimated amount the insurance company can deal directly with the body shop. It can also make it easier for you to not have to deal with payment to the body shop, thus all you will have to do is drop off your car with its damages and then when it is repaired pick it up and drive it home.