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Advice about minor car accident claim.

Hi, just after some advice with regards to minor car accident. My car was hit on the front drivers side and bumper, there was only minor damage to my car. Third party have admitted liability and my insurance company have arranged for my car to be repaired. In the meantime my car has developed a fault, nothing to do with accident, it is going to cost too much money to repair so I'm going to have to get rid of it. I rang my insurance company up to say there was no point in going ahead with repair and also to see if there was any possibility I could have a cash settlement instead of the repairs, they told me if I didn't go ahead with the repair I would be liable for the work they had done in arranging the repair in the first place and also getting the third party to admit liability. Would anyone know if this was correct? Thanks for any advice you could give me.

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