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UPDATE:
I finally have the car back. Nearly a month after the initial problem, it is back on the road. Even though I still think it was my best option, getting an insurance company involved really slows things down.
The total bill from the dealer was $1680 which includes $960 in labor to remove the seats and all carpeting to dry it out. The rest of the cost was for a new alarm module, key fob, and programming.
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