If you want to spend £4k on a respray on a car then that's your choice. But unless you specifically make your insurance aware that you value your car far higher than the 'standard' market value, and pay any additional premium, then the car is insured as a 'standard' model, and nothing extra.

If you can PROVE that the car is worth more than the insurer has valued it at (for example, getting an independent assessor, at your own cost, to provide that valuation), AND that the cost of repair is LESS than that value, then you are entitled to have the car repaired. However, do note that, if in the course of doing the work, further damage was found which would then push the cost of repairs over the market value, then the can can be 'written off'.

The alternative, if you are going to keep the car forever, is to purchase the 'salvage' from the insurance company as part of your payout (let's say the salvage is valued at £1k, the car was valued at £7k, so they give you the car and a cheque for £6k) and you then go get the car repaired independently at (hopefully) less than the full whack price.

Sorry, what I meant was that if you want to respray a car, and pay £4k for doing so, then you can't automatically assume that it makes your car worth more in the event of a future accident - unless you've gone through a valuation process with your insurer and have an 'agreed value' policy.

Your 'quantifiable losses' are for a 13 year old car. A court case (if you did go down that route) could cost you thousands, and you could well find yourself having your case thrown out as vexatious (petty, in laymans terms) and you being forced to pay both sides legal and court costs. Think about it. You are spending thousands of pounds to possibly get an extra £2-3k. Even if a court did decide in your favour, unless they made an order as to costs (forcing the other party to pay your costs, and such a thing is definitely not a certainty, even if you win) then you'd be left with your 'winnings' and a large legal bill. Or, in nett terms, a debt.

I'll repeat : if the repair is more than the value of the car, then you have NO legal right to have the car repaired. Take a case like that to court, and you'll be highly likely to lose AND have legal bills to pay.

Looking through Autotrader, I'd say that the valuation the insurance company has given you seems about right. For example, a 2006/56 (so newer than your car) Sovereign TDVi for sale, one owner, 'fantastic fully documented service history' and 51k miles for under £8k.

I think your valuation of your car is a bit unrealistic.

Unless you have a car independently vauled and then insure with an insurance Company that accepts the valuation, you have no rights other than as haveing a standard valued car.