Sean,

Unfortunately, you can't replace a car for its value. I did a KBB search on my own car (also a 97), and the values varied between $2700 (trade-in) to $5000 (retail).
Then I did a search on autobytel to see how much I could buy one for. The CHEAPEST one I found was $10K. So I would pay more than double what my insuracne would give me, had it been totaled.

Insurance can be cruel. I just got off the phone with my insurance and my landlord's insurance, and I'm red as a beet. Back in August, a tree branch fell on my car and dented the hood in. The damage was assesed at $1300, but they will only give me $800 (the amount, less the deductable). They said they can't recoup the damage from the homeowner's (even though the branch fell on the property.) I called my landlord's homeowner's and you know what they told me? That the only way this would have been covered by them, is if I had noticed the tree was sick, and sent a certified letter to my landlord, along with pictures of said tree. Before it fell. So, I would have to be psychic.

So, I'm out $500, like you. Thankfully, my car still runs. I'm thinking about not even getting it fixed until we move. Just in case another branch falls!