Is it fraud to cash in on your insurance claim check?

My Neighbors child rode his bike near the side of my car and scratched the side of my car with his handle bars. There's no question to weather he did it or not seeing as their were adults who witnessed it and the mother too full responsibility and filed a claim as well as paid her deductible for the claim on HER renters insurance (home insurance, SF) I was contacted and told since it's not a auto insurance claim they don't send out adjusters and to get a certified quote from an auto repair shop and she'll issue the check for the quote. The quote to my surprise was well over $1k! Which to be honest wasn't that bad of a scratch and after a second opinion the amount seemed to be legit for the area I'm in. My neighbors insurance company contacted me and told me the quote was accepted and she would be paying me directly for the quote in the form of a check (made it in my name only)... now, my question is, can I just repair the damage myself and keep the claims check? Yes I have a lien holder on my car. But like I said it's a long scratch but something I can easily fix with one of those car scratch pens, and my car was purchased used with scratches already on it (some worse then the scratch itself) I don't want to end up getting in trouble for cashing in on it seeing as it's not my insurance and the claims representative got the repair shop to fax her the quote.