Is my insurance company screwing me over?

I was in a car accident about two weeks ago ( it was a hit and run) and my car sustained a considerable amount of damage. My 2002 Ford Foucs is worth about $3900 according to my appraiser because the mileage is low ( about 106k) and it was in very good condition. The cost of repairs was set to be about $3100 and some change. I kept pushing my insurance to just total out my car, but they won't because the body shop says it can be repaired. Am I in the wrong here? Maybe I'm not understanding, but in what universe does it make sense to pay $3100 worth of repairs for a $3900 car? Not only that, but my car has frame damage so now even if they fix it I won't be able to trade it in because no respectable dealer will take it. What should I do?

Keep in mind that to a dealer, your car is worth MAYBE a thousand bucks. Because they can go to a dealer auction and get one of those cars any day of the week for a grand. So you don't really lose out on that much trade in value. Insurance value is different and should not be used to determine trade in value.

Any dealer that tells you the trade in is worth more is just taking a "cash discount" on the car and removing that and then adding that same value to your trade in value. It's a pretty common tactic.

That being said, you are correct that it's off for them to repair the car when it's so close to the value of the car… The only thing you can really do is look at the policy and read through all the fine print and see what that companies policy is on repair cost to car value ratio and where they deem it to be a write-off in their company policy. They might have something in there you could use to make your argument but likely you will have to just let them fix the car and then change insurance companies for next time.

Normally at 70% of value they write the car off as repairs can go over estimate easily.
I surprised they want to try to fix it.
Make sure you do not accept poor work or pattern parts.

It is their choice whether they pay to repair the car or write it off. In this case, they will do the repair simply because that will cost them less ($800 less). If you offer to take the repair cost as the write off fee, you may find them willing to do that - but they are not going to give you $3,900 if they can repair it for less than that.

It is borderline constructive total loss. Get yourself some salvage bids. If you can get $800 keep the settlement check and sell the salvage.
In any case you do not have to have the vehicle repaired. You can keep the settlement and get as much as you can for the salvage.

Make sure they take the frame damage into account.

The condition for repair is to be fully repaired. This involves having a vehicle with the same resale value. I would involve an appropriate lawyer for his/her advise.

The insurance company can do what they want - they obviously don't want to take the full hit, so they are saving $800 by repairing it - it might also be saving you on future premium increases and why would you ever trade in a car that old? - you keep it and run it until it dies

Put yourself in the insurance company's shoes. Why would they pay $3900 for a car they can repair for $3100? It isn't your choice whether the car is totaled or fixed. You gave that choice to the insurance company when you purchased their coverage.

It appears to me that this is standard procedure in cases like this one. As to what you consider getting screwed is nothing more than a disagreement as to your perception and what is stipulated in your contract. Perhaps the next step is negotiation. Perhaps you have ask to trade the repair check for the car. I doubt they might go for this but it is free to ask. As to your objection, keep record of every conversation, paperwork, etc. As to this claim. As to the value of the car, there are many. The trade in value is different from the retail estimate. But there's nothing set in concrete. This past April I paid $14,000 for a car that five months prior was listed for $18,900. As to your car, depending on the repairs, you may end up with a better car that what you had. Please consider all possibilities.