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We're in two different countries (I'm in the US, you're in Canada). I wonder if Canadian laws are different from US laws in terms of the insurance company's responsibilities. Here, insurance companies are just required to pay to have the car repaired to pre-accident condition. I'm sure a body shop would be charged with fraud if they tried to rip off the insurance companies.
As an aside, insurance companies here do whatever they can to try to screw over people who were accidents. For example, they try to pressure people to use their in-network body shops. And if you're the person who was hit by one of their customers, they'll tell you that they're paying for aftermarket parts. When in fact, you can choose any repair facility you want, and if you're the "victim", you are entitled to OEM parts. Everyone ought to know their rights, so they don't get screwed.
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