Depending on your policy he may be forced into a settlement. Some policys, like the one I drew up with Nationwide, expressly forbid the use of aftermarket/reproduction parts - this prevents the InsCo from getting away with a halfassed, duct tape rebuild or from say using "cheaper" plastics for...say the frame work. If this is the case with your friends the InsCo might not be allowed to buy a $3k hood from autoform and have to buy a NOS hood from DC - pricetag currently in the $15-18k range. This would very easily total the car.
If the damage is as light as you say - total the car, get a cash out, buy the remains from the InsCo, replace the hood and use the left over cash for a nice supercharger upgrade.
-- Oh, and the "offical" blue book value of a 94 rt is around $20-25k though those of us living in the real world know it to be at least 10 grand upwards.