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This is BS they owe you at least 2500 bucks, KBB classic car value is like 2800. DO NOT back down on this. I got 3500 bucks for my totaled mk1. And I got them for 5 days of rental.
You deserve KBB value for a good condition car. It is the insurance adjusters job to give you less than you deserve. They are snakes do not let them f*** you on this, please. No need to sue them just agree to anything less than what you want. You'll get it they are not going to go to court over 2 grand.
Get at least 2500 and buy your car back for 200 or so. Buy another mk1 with a bad engine, swap the rebuilt engine and whatever else from the wrecked one and use the leftover cash for a set of STs and Konis and all the rest of the cool suspension goodies Two's r us sells.
I now have a 20v swapped mk1 since my other car got wrecked and I'm not out a dime out of pocket.
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