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remember you can always negotiate with the insurance company. i would try to get the buyout price closer to $1,000 citing the higher estimates you received. If you get it for $1k i would take that offer with the cash then you can sit and think about what you want to do. If you decide not too fix it you can easily sell the running driving car for more than your $1k investment and you have time to really decide what you want to do.
That is assuming you have the space to keep it and time to think on it.
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