[Excaliber]

I think it was more than the cost of repair, they were thinking of potential future claims against the car.

I bought fairly new Dodge some years ago, totalled, salvage title, got it for a SONG! Electrical under the hood fire, likely cause was the main battery wire to the alternator rubbing/shorting. Damage was not "that severe" but the insurance didn't want the risk associated with additional electrical component failures that could be traced to incorrect repairs down the road.

I repaired it, sold it, made a NICE profit and followed the car for several years after that. It was fine!