Auto Insurance Claims: Advice on insurance Claim, classic muscle car, quality paint and body

Question
I recently purchased a classic muscle car located out of state. I had the car professionally transported in an enclosed trailer. The rear trunk lid of the car was damaged during transport and some of the paint in that area worn down to primer. The transport company agreed they caused the damage and turned me over to thier claims department. They asked for me to provide 2 quotes for the repair, which I did. Being a classic car with a show quality paint and body I took care in selecting repair shops with the expertise and history of properly handling these types of repairs. I took the car to 4 shops and provided quotes of the 2 shops I was most comfortable with. All of the shops recommended the same approach to repair that included repainting the entire rear of the car to properly blend the paint. The 2 estimates came in at $4800 and $5600.

I sent the quotes and photos of the damage to the claims department and was initially told the repair was excessive and too extensive for a simple trunk repair. I explained the repairs were recommended by all shops I visited and to call the shops directly if they disagreed.

The claims department responded a few days later saying they talked to two local shops of their own (They are in New York, I live in Maryland) and agreed the extent of repair was not out of line, however they now feel the labor rates are too high compared to their local shops. They offered to give me $3000 for the damage or they will pick the car up and repair it at a shop of their choice.

What are my legal rights with respect to the repairs and where they are performed? Are they allowed to repair it on their own at a shop of their choice? What are they responsible to pay and can I also ask them to reimburse me for my expenses and lost wages for obtaining the estimates?

Thanks,
Scott

Answer
It boils down to this.  If there are shops in the area who can repair the car to pre loss condition for $3000, then that is what they owe for.  

You can allow them to pick it up or can accept the $3000.

If a shop cannot repair a deck lid and blend the 1/4 panels to obtain a proper finish, then I guess it makes sense that they would need to overcharge on their work as they are likely starving.

I'm not even going to address your question about lost wages and expenses.  Go watch Boston Legal.