Can a dealership charge me out of pocket from my down payment for a difference in repair cost instead of going through the insurance company?

I put a 2000 down payment for a 2008 Kia Spectra, the day after getting the car I lost control while driving because of bad weather and went into a side barrier, filed a claim with my insurance immediately, the dealership called after me having the car for 6 days saying they could not finance it. I took the car back to the dealership and they took it to Sudden Impact for repair. My adjuster did a estimate of 2949.90 and paid 1949.90 minus my 1000 deductible which I knew would be taken from my down payment. Sudden Impact said the final cost of repair was 3842.00 and they charged me out of pocket for the difference in the amount of 892.10. So all I got out of my 2000 down payment was 107.90. I asked my insurance company about it and they stated that a supplemental request should have been submitted for the difference and that I should not have been charged out of pocket. They stated that Sudden Impact did not follow protocol by not submitting the supplemental request. Do I have a lawsuit