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John,
I'm sorry to hear about your wreck. But, the car did what it was designed to do and saved you and yours from serious injury or worse.
The estimate sounds low to me. My '98 S70 was rear-ended and the final tab was much more than that. And, there are virtually no mechanical components in the back of a FWD.
It is true that the car will never regain resale value. Also, even the best body shop cannot duplicate the quality and durability of the factory finish.
However, my personal experience is that a good body shop can make the car as safe, solid, durable and rattle, squeak, etc. free as the factory.
So, your decision may be based on your intentions. If you really like the car and want to keep it for many years, then fix it. However, if you want to trade it in after a few years, I'd try to have the insurance company total it.
Don't know where you live, but I can wholeheartedly recommend J&J Body Shop in Ontario, Canada.
Best wishes,
Bryan
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