But not for car repairs?

I don't know about your auto insurance company, but mine has "preferred shops" and I presume the reason they are preferred is because they have negotiated some form of discount.

I guess not. Which does seem a little weird now that I think about it. Not sure why cars would be different.

Because the law allows you to go to any mechanic to get your car fixed, and they can't negotiate with every mechanic in the market. Most auto insurers have "approved" repair shops, and if you go to one of those, the rates can be cheaper than cash.

Ah, that makes total sense. Thanks!