Will the car have cost you 50% of the un-damaged value when it's back on the street? ie They give you the car and $4k. You get it roadworthy again for $2k and have money in the bank.
If not, take the payout and buy something else.
You haven't mentioned what model, that would be a massive factor in the economics. Finding a good 1600 gearbox is like collecting baby unicorn tears for a bath.
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