Radz,
YOU ARE THE MAN!!!
Well, here's the good and the bad. The dealer's repair center basically refused to do the work and warranty the job. I couldn't figure out an angle to convince the insurance company to pay extra for warrantable parts, nor could I find an angle to get the dealer to warranty the repair for the estimated quote.
The LKQ scenario you describe above of finding a donor car and transplanting it into my car is exactly what the insurance company wants to do. After speaking to both repair centers here is what I found. The dealers wants all new factory pars and they want to recreate the rear quarter from scratch. The Insurance co. wants to cut an assembled rear quarter out of a doner car and install the complete rear quarter as an entire piece except for the outer body panels, lights, floor panels, shrouds etc. I'm pretty sure I understand the pros and cons of both. But in the end, the preferred repair center will give me a lifetime warranty while the dealer won't. And the preferred repair center has the option to refuse the LKQ parts if they aren't acceptable or adequate for the repair and warranty. Whether or not they will do this is anyone's guess.
So, with all things considered. I'm getting impatient, I want a warranty, I don't want to be the middle man any more and my gut, which has been wrong before, says the preferred center will keep my best interests. I don't have the time, to shop this job around, I wish I did but I just don't. That may sound a little hypocritical seeing as how much time I spend here, but that is a perk of the position I hold.
So, the bad is I'm probably gonna ride it out with the Ins Co's repair center and just watch them like a hawk.
I haven't signed the authorization to work form yet so it's not too late. Does anyone have a problem with the donor car LKQ repair that I'm not catching?
And once again, thanks to everyone.