Looks like the insurance company have made a mess of this one. Either they have it repaired or they write it off and agree a figure with you. If they were going to write it off, why the h*ll did they have it repaired? (I presume it wasn't you who authorised repairs).
I'd ring 'em up and ask them what they're playing at (and, importantly, establish that you are still insured).
Glad you got your car back, anyway.
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