Then it wasn't a total.

As I said; "The initial estimate would have totalled the vehicle". 'Would have' is the operative wording. I am just telling you what went down. The insurance company wanted to pay him out and total the car based on the first estimate. We submitted a second estimate for him as I said and they paid that amount and let him keep the car. What is so complicated about that?

The insurance company has no say in the title branding requirements and no say regarding retention of salvage. If the car is a total, the insurance company is not going to circumvent state law regarding title branding requirements just to satisfy a customer. They may negotiate the outcome of the claim, sure, as your example indicates. But if it's a total, they're following state law regarding the title. They can get in a LOT of trouble if they don't.

I think you are making this more complicated than need be. I am not debating state law with this. I rebuild vehicles for a living and have for decades. This is not out of the norm or illegal or anything like that. I buy cars with very little damage (certainly not enough damage to meet any legal requirements) that have been 'salvaged' by the insurance company.

I have to remind people that the 'salvage' brand on a title is a clerical step sometimes due solely to liability concerns and may have nothing to do with the actual condition of the car. Another good example may be with back ordered parts: I bought a real nice Chrysler 300 a couple of years ago that only needed a rear bumper cover, taillight and a little quarter massage. But the bumper cover was a high trim model that was on back order. The insurance company totalled it due to the customer's time constraints. I eventually found a nice used bumper the right color and fixed the car. Some fancy headlights have caused this kind of situation, too. Heck, a racer here in town waited months for a part for his Ford truck taillight. Apparently, the LED taillight was a 4 or 5 piece unit or something like that. But that's what he gets for buying a Ford.

And how about another example I am familiar with? A neighbor's son had a Crapmaro. He got a ticket or two and the dad (who was footing the bills and should have know better than to give the kid the Crapmaro) was wanting rid of the car, but keep peace in his household. So, when the kid got into a fender bender (I don't even know who was at fault) I suggested the dad ask the insurance company to total the car. He ended up telling his agent that if he didn't total the Crapmaro, that he would take all of his business somewhere else. The Crapmaro was totalled.

Another example would be some situations with an over abundance of hail cars. Or with new repo units, especially industrial stuff like trailers. I have many, many more examples if you would like them where the 'salvage' designation was brought for reasons other than the condition of the vehicle.

So, until the particular situation butts up against some state regulations, the insurance company has a great deal of latitude regarding the title status. Within the limits of their own regulations. And that is what I am talking about. Not skirting state law.