Are you required to fix the body damage after collecting the insurance settlement?

Usually "no," unless...

1. You have a lienholder/bank on the draft, at which point they'll probably want it repaired before endorsing the check.

2. The vehicle isn't roadworthy, which could cause problems if you have a state inspection for emissions, etc.

3. You're not okay with those damages being deducted dollar-for-dollar if you have another loss, or total the vehicle.