Auto Insurance Claims: Vehicle Salvaged - Ins. Co about to drop me, salvage title, hail damage

Question
My car was involved in Hail Damage and has been deemed Salvaged by
the insurance company, they paid my car off, and I got money back as
well as the title. I have decided to keep the car since its just body
damage. The problem is recently I got a letter from my insurance co.
Stating they wont keep me insured unless I send them paperwork from
the DMV that it has been re-registered as salvaged. They submitted
paperwork to DMV on Oct. 27, 2010, after speaking with the CA DMV
Headquarters they are 90-120 days behind in opening mail, that means I
will be lucky if I can re register my car by the end of The year. I called my
insurance company and notified them of The delay in The process And
there is no way I will have the paperwork to them by the end of the
month. Their response was I need to keep calling the DMV to get it done
by the time given and if need be they will give me 12 extra days I told
them I need more time, they refused and said they have to follow their
guidelines. I'm stuck between 2 rocks and don't know what to do?  I also
asked If I can keep my policy the way it is until the DMV has received the
forms they said No and once again have to follow guidelines and if the
car is not re registered by the time given they will drop My policy.  What
can I do?  The DMV Headquarters will not expedite The process and now
I will lose insurance, please I need advice.  Thank You.  

Answer
First of all, consider getting the eBook Total Loss Auto Advice for Insureds at UClaim.com to answer all your questions in depth. You can't be forced to put a salvage title on the car. Its not a total loss if you intend to fix it someday and the car is street legal to drive. All you need is liability insurance to satisfy the DMV, not collision or comp for the car. So tell that to your insurer, and if they jack you around, shop elswhere for insurance.