Sorry, but this is what you get from buying an extended warranty. If the condition actually exists in your warranty that all mechanical work on the car has to be done by Mazda (which is BS. I sure hope they told you about that giant catch in their warranty) then you are in a difficult spot. Your insurance company likely doesn't want to pay to have your car sent back and forth between Mazda and the body shop several times (I'm guessing the damage is pretty extensive and this would be the case as some things need to be fixed at the body shop before mechanical work can be done and vice versa).
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