Enter the repair invoice under Transactions -> Purchase Invoices as usual, using the expense account 5420 Car Maintenance and Repairs (or another account typically used for car repairs in the company).
For VAT type, select either 22% Car Expenses (100% business use) or 22% Car Expenses (partial business use), as appropriate. If the company is not VAT liable, the amount including VAT is posted to the expense account.

The purchase invoice is paid to the repair shop by the company by the agreed-upon due date.

The insurance reimbursement amount is received in the bank account. This transaction is recorded as a financial entry:

Debit 1020 Bank Account
Credit 5420 Car Maintenance and Repair

Since the money received from the insurance is not income but a cost reimbursement, this entry offsets the expense in the income statement.

Enter the repair invoice under Transactions -> Purchase Invoices as usual, using the expense account 5420 Car Maintenance and Repairs (or another account typically used for car repairs in the company).
For VAT type, select either 22% Car Expenses (100% business use) or 22% Car Expenses (partial business use), as appropriate.

The company is responsible for paying the VAT portion. Record the VAT amount as paid from the bank account in the usual manner.

Mark the repair cost as paid with the “Offsets” account, and you can use the purchase invoice date as the payment date. Open the financial entry for the payment and replace account 9999 Offsets with account 5420 Car Maintenance and Repairs.

Since the money received from the insurance is not income but a cost reimbursement, this entry by changing the account offsets the expense in the income statement. The invoice is also correctly marked as paid.

Essentially, you could also create a separate payment method to avoid changing the account in the payment entry, but for individual cases, there is no need to add unnecessary information to the database, and simply changing the account in the payment entry is sufficient.