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What is the law when an insurer seeks recovery beyond what was paid?

Question Details: I was in an accident and my insurance company opted to cut me a check for the repair estimate instead of going directly through the repair shop long story, not relevant. The estimate they based the pay out on is less than the estimate they are seeking to recover from the at-fault party's insurance company. The estimate differences are based on specific "corrections" for various part prices and repair costs. I have 2 estimates, 1 with red lines through some items and corrected cost estimates and a corrected total estimate my payout is based on this version. The version they sent the other insurance company through subrogation is the uncorrected version the higher estimate. Is this legal?

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