As you have said before, everything depends on the particular policies of the insurance company and possibly the lien holder. Title condition can sometimes be negotiated as part of the deal. Sometimes.

We just went through this with a customer here in Illinois. The initial estimate would have totalled the vehicle. We helped him shop used parts and such and he turned in an estimate that allowed them to compensate him for that estimate and he retained the clear title. The accident will still show up, but the title is unbranded and never left his possession.

Again, everything depends on individual circumstances. But if you have an agent that is willing to work with you and help you navigate the particulars, sometimes you can end up with a better deal than the first one that the insurance company offers.