IF you go to a body shop to get a dent pulled, you will receive one quote. If you tell them insurance is paying you will receive a second, much higher, quote.

The dealer will say it's because the insurance company is such a hassle to deal with that they have to dedicate employee time to jumping through hoops to get paid. The insurance company will say the quote is higher because the dealer sees the insurance company as a big bag of money and if the insurance company doesn't ride them then prices of insurance will go up.

Dealing with government is this times a thousand.