That's a load of shit from them...I didn't even involve my insurance company. Just a third party assessor / litigation lawyer who the panel beater referred me to. The woman who hit me admitted fault and her insurance company took on the liability, so everything I'm out of pocket after that is on her insurance, hence free loan car because I ticked the box that said I don't have access to other transport.
Involving the lawyers has turned $1000 worth of panelbeating into a several thousand dollar claim.