Take the payout and keep the car if the damage isn't that bad to you. When my 86 coupe was rear ended the insurance company also wanted to total it, but because the car was drivable I simply dragged my heals on calling them back. The adjuster has to explain to his boss why the claim hasn't been settled and he's under some pressure to clear it off the books. Never take what they offer the first time. By delaying, I managed to get another $500 on the value and then took an 80% payout and kept the car which I drove for 7 more years.