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You shouldn't be dealing directly with the body shop at all except to pick up the car when it's done.
Tell your insurance company they need to deal with the body shop directly.
It is highly unlikely the insurance company would suggest using used parts on anything cosmetic, if you end up with a scuffed or used tail light or something similar I would ask for a new replacement and if they do not agree then file a report to BBB.
Many body shops cut corners to save a buck. Do not feel too sorry for this repair guy...I worked for a body shop for a while and this is typical BS he is telling you. Likely he will get a check from insurance company and cut corners to earn more $$$. If he has any skills at all he will mend the metal and save the new parts costs.
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We are the early orderers...we are GM's voluntary guinea pigs and their free source of feedback. How will we be thanked?
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