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In my personal experience, the best route that I saw was to settle cash with the garage owners.
I know that option to go through their insurance, I am sure that that insurance company will take you to their preferred auto body and the BMW-approved shop you are wishing for would be the last on the list or even not an option because of price difference.
To give you an idea, an approved BMW auto body quoted $5,000 to replace the headlight, repaint bumper, and fenders. On the other independent reputable shop cost $350.00 to buff out headlight, repaint and repair part of the bumper, repair and repaint fenders.
Also a big benefit of paying out-of-pocket is that it would not show on CarFax or other records, affecting your resale value...
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