Normally the insurance company will allow the repair shop one more attempt to repair the car to a satisfactory standard. It is a good idea to request an insurance adjuster to personally inspect the car. The car shop will typically comp a loaner car, since the additional days in shop were required due to their negligence.
The requirement to allow the repair shop another attempt is common, since if the insurance company was not involved, most courts will expect a plaintiff to give the defendant a reasonable opportunity to cure their defect.
If the car remains to have issues, then the consumer can request that the insurance company send out an adjuster, and authorize another shop to do the repair. Most insurance companies are very cooperative on this point. If the repairs are done so poorly, the shop may even be removed from the preferred mechanic list.
A consumer need not take their car to a preferred auto shop as they are free to take their car to a shop of their choosing.
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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.