Some auto insurance companies are insisting on using salvaged parts for replacement repairs on their insured's vehicles. Some experts say that use of such salvaged or generic parts devalue the auto by 10% or so and make it more likely to need further repairs. A West Virginia court last year ordered Liberty Mutual Insurance Company to stop using salvage parts on cars three years or less old.
Source: Boston Globe
This is an ongoing issue that often leaves repair shops caught in the middle. You should stay engaged with the insurance company and do what you can to make sure the best, newest parts possible are used in repair of your car.