you have the right to have it repaired, but the insurance company have the right to say where
unless you can prove that it would invalidate your warranty,
although most warrantys only insist work is done to the manufacturers specified standard, hence why most dealers can sub the work to local bodyshops
Actually, most insurers will allow you to use the bodyshop of your choice. For example, this is Direct Line's policy:
"If our approved repairers carry out the repairs, you do not need an
estimate and work can start immediately. Or, you can arrange for
reasonable and necessary repairs to be carried out at a repairer of
your choice, as long as you give us a detailed repair estimate and full
details of the incident before the work begins."
That's what I thought.
TBH, I think different policies have different erm, policies, regarding to the actual use/choice of repairers, loan cars etc. in the event of a claim.
Check your insurance policy details to see what it says wrt getting your car repaired.
D.