owner retaining totaled car

my car had previous non-fault damage(front driver-side fender) that was never fixed , but passed smog and was registered normally as drivable vehicle even after the damage. the same car was damaged again recently in the rear(busted driver-side tail light lamp assembly and trunk lid dents) and is totaled because of that which was far from its driving capability. the other party's insurer took photos of my car's current condition and seemed to have considered the previous damage in their appraisal to calculate the settlement to the least possible amount and is instructing or informing me that my car needs to be re-registered in the "salvaged title" category and may need to re-smog test again, and pay other dmv associated fees as a result of this last damage(cars was inside a covered railed,pull-down, and locked garage: neighbor accidentally back into my garage moving my vehicle with the mentioned rear damages). is it true that i need to re-register and re-smog this car again where the damage is irrelevant and far from the engine and no visual disruption to its emissions whatsoever? or is this an insurance scare tactic making me think of (fictitious) out of pocket expenses that may be involved for keeping it so they could buy the car cheap from me while the car is mechanically in excellent, well, and owner self-maintained condition. i'd appreciate your knowledgable expertise on this tricky game SOME insurance companies MAYBE playing thanks and GOD bless you.