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Take it to your nearest Volvo dealer. Explain the problem, make sure the transmission is warm, and have them inspect the entire car. The inspection will cost you about $100, but worth the write up. Just remember, there is no need to get anything done... but the warranty will cover the tranny replacement. Let the dealer contact the insurance company, not you.
So long as a company is paying for the work, go ahead and replace the tranny. Volvo will install a reconditioned unit, hopefully from a 2002+, update the software, and you should be good to go for at least 250K miles.
Klaus
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Always willing to listen, just not able to take direction.
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