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If these folks have an insurance program, then they should pay whoever you chose to perform the work. I would contact your insurance company and have them deal with theirs. Since they're at fault, it will not affect your premiums whatsoever. However, what you pay all those premiums for is so they'll represent you and take care of those details for you when your car is damaged.
As far as the paint work, the above response is correct, it lies mainly in the prep work moreso than the quality of the paint. I would check with your Volvo dealer and see who they recommend.
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