Replacing undamaged body parts is orders of magnitude easier then replacing something that's been in a crash. Most bumpers or fenders can be removed in under an hour and install time is similar. (Source: I worked at a body shop while I was a teenager and I used to build AutoX/Drift/Rally cars after that) You can charge insurance insane amounts for parts if the value of the car is high enough that it's not going to be a total loss. That "cost" is separate from the actual cost of the parts/labor. Along the same lines MRIs really don't have to cost $10,000 regardless of what your hospital puts on the bill. When you can go to the phone book and get the same MRI for $500 from many sources.. but you're not going to be price shopping when you're in the ER with a broken leg. What's the real market rate?