I don't understand your complaint. They are willing to pay $5779 and still let him have the car with a clean title. You said the car can be fixed for around $6200. That is only $421 dollars under the repair estimate you gave. That would be less than the deductible on most insurance policies.
The numbers you are giving show they think that can get $1800 for the car as salvage. $7579 - $5779 = $1800
If you son wants this model. Just take the $5779 and have his fixed. Most body shops will give a better deal if you are paying for the repair without any insurance paperwork to fool with. So he should be able to get his car back with a clean title for what the insurance company will pay plus what a deductible would normally be.
What your car is insured for and you get paid has little to do with how unusual the car is unless it is a collector type of car. To your son it maybe what he places extra value on this car. It must not be that valuable to others as it is not a common car.
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