Dishonest?

So, today we got a check in the mail from the other insurance company, to pay to fix the Focus. We were involved in a minor fender-bender a few weeks ago. The Focus already has some dents. I wasn't even going to bother fixing it, because what's a few more, you know?

But, the other party called the insurance to report it, and since it wasn't our fault, we decided to go ahead and follow through with it. So, today we got the check for it.

Now... here's my question. The amount in the check would pay for the brake's to be fixed on the Focus (something rusted, so Mike doesn't feel comfortable changing them himself), and would be enough to get both cars smog tested and registered, and there might even be some left over to make us official citizens of the state we live in. What can I say? Driver's licenses are pricey here. :)

But is that honest? Ethical?

I can't find anything illegal about doing it per se, but I don't want to do anything wrong, you know? Would it be wrong to use it for something else on the car? Thoughts?