@TRDdrew and/or others can probably discuss "salvage title" and insurance buy backs with knowledge of the DMV area regulations. It might be worth investigating in order to keep the vehicle that you have so much time into and planned on keeping for a long time. Now that you know you'll have to pay out of pocket instead of relying on insurance (common for older vehicles, and it seems "old" gets newer every year), it won't hurt so much when you do, and your insurance rate will likely go down.
You should also look into Hagerty's, or a similar, company for insurance at "agreed upon value". I'm not sure how a salvage title would factor into that, though.
The key here is that you haven't turned over the vehicle to insurance yet. It remains yours until you accept their offer on the claim.
I'm not very intelligent. Don't take anything I say as gospel. But...plenty of people here have knowledge in this area. Hopefully they'll chime in.