I was in your situation earlier in the year...

2001 Corolla with 138k in absolutely immaculate condition. I was rear ended, and the insurance wanted to write it off, saying the average market value for my car was around $4,000 and the repairs would be about $3,000.

What irritated me was that the car was still driveable, and the insurance company didn't provide a rental because the car could be driven.

My position was "if it should be written off, then it's not really driveable...is it?". The adjuster was cool, and said he would have it fixed if it were up to him, but there is a financial threshold that the company uses to determine whether a car should be repaired or not.

If the insurance company wrote the car off, they would have easily made their money back by selling the car again. As mentioned previously, it is a business.

The dispute took a few weeks to resolve, but it involved me submitting invoices and service records for work done to the car. Within the previous two months, I had purchased new winter tires, installed new brakes, and had the car rustproofed.

In the end, the insurance appraised the car at around $7,000 and paid for the repairs.

If you've spent money on the car recently, definitely submit your invoices to be taken into consideration for a settlement.

A word of advice - make sure your wife gets the medical treatment she needs, and finds a good rehab facility.

I hope it all works out.