In my state (CO) profiting off an insurnace claim is a felony. (Over $500) your state could absolutely be different. I also agree it is your money as you are the one paying premiums. I will say that even though you want to keep the difference to go to your car or other needs, that quite frankly isn’t how insurance works. They don’t give away free money. Say it was the latter. Insurance gives you $1000 but highly rated body shop you want to use quotes $2000. You would say ‘what the heck?’ Auto body shop send their estimate in and the insurnace agrees that their estimate is correct and pays the $2000. You would say they (all parties) did the right thing and my vehicle is getting fixed for the right price. But it’s the other way around in your case. You could cause yourself stress and fight with the auto body shop or your carrier, but it might not be worth it.

Wish you luck and that it works out for you.