Auto Insurance Claims: Accident with a previously total loss vehicle, total loss salvage title

Question
I was at fault with a vehicle which I hit the tire and busted the tire and the hub cap and bent the rim, on the rear passenger side of the car.  I have found out now that the 1996 Saturn 4 door SF1 which the owner states has less than 67,000 miles was previously totaled.  Before I knew the vehicle was purchased with a Salvage Title, I was willing to pay out of pocket the lowest estimate which is $1,000.00, but they want to be paid the highest estimate, which is $1,525.00. The owner also told me today before I found out about the salvage, that if they do receive a check this week they will be taking me to court.  I have discussed this accident with my insurance agent, but was wanting to know your thoughts of what the vehicle may be worth under the circimstances, and how would you suggest I handle this situation.  Thanks for any thoughts you may share with me.

Answer
If you turned in the claim to your insurer, then let them settle the loss with the other driver and you won't have to worry about the value. If you are paying their damages out of your own pocket, you owe them the "fair market value" of the car. You could hire an independent appraiser to do a valuation and use that in court. Also, the other driver needs to prove to you what the value of their car is, so you have the opportunity to disprove it. IMO, a salvage title should not reduce the value by more than 10%.