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I believe that CarFax gets reports from both the body shop employees as well as the insurance adjusters. In the case of my friend with the Subaru, when his car was being inspected and the repairs were being priced out, someone mistakenly selected a wrong code that showed it as a total loss. The supervisor of the insurance adjuster was the one who actually contacted a higher-up at CarFax to correct the report. If you get a CarFax or AutoCheck report, they actually show service and routine maintenance at dealers, so obviously there is some kind of a repository of information that both companies are tapping into.
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