Auto Insurance Claims: Insurer will not total car after collision, chevy cobalt, brand new car

Question
My son was rear-ended by a hit and run driver on 3/28. His 2008 Chevy Cobalt LT (30 days old, 3900 miles--he has a long commute--no prior faults or blemishes) sustained $7900 (latest estimate) in damage. Body shop is going to replace rear panels, etc. but not frame rails as they are bent but "will pull into shape so don't need replaced." Car cost about $14,800 new. My contention is that with the frame damage and all that needs replaced there is no way the car will be as-new or for that matter as safe as it was when new. State Farm will not total it. As he is dealing with his own insurer, apparently he can't get diminished value (if you can at all in CA). He has UM/UIM coverage, too. So, my basic question is this: is he just out and has to accept the fact his brand new car is now basically not worth near what he owes through no fault of his own? Any recourse? Oh, and State Farm also is telling him they don't have to pay the deductible under UM unless he can prove the hit-and-run driver was indeed uninsured. Does he have to do the legwork on that, too? Thanks.

Answer
Hi Doug-

I'm sorry to hear about your son's accident.  

What I understand is that insurance companies contend that if they make your car like new, there should be no diminished value.  I don't know a lot about frame staightening, but I have to assume that it would not standard practice if it made vehicles less safe.  I can see that it may be a factor if you go to sell it and they run vehix and see that it's been in an accident, especially with a car like this one.  Insurance companies contend that they make it as good as new.  I just don't know of any recourse.

The UM issue is standard on a hit & run.  It's not covered by UM if the driver can't be identified.  This is partly due to fraud.  There are too many people that would go out and wreck there own car and claim hit & run so they could make a few bucks or claim hit & run if they back into a pole etc.

Sorry I couldn't have been more help.  

Sheldon Maughan
Sacramento, Ca