The insurance company will not be trying to get the car off you and sell it themselves, it really isn't worth very much to them in that state. About 200 in scrap value if your lucky maybe. If they buy it off of you it will be in the crusher before you know it...... The price they are paying you is it's pre accident value.... I am pretty certain they will quite happily sell it back to you once they have payed out to you, but just confirm that with them first. Why are you so fussed about a cat-c or d marker in the history of the car? The car will have always been in an accident even without the marker in the history to prove it. When buying cars of this age most buyers are more interested in the actual condition of the car at the time of sale than if something happened in the past which has been repaired to a professional standard..... Getting it written off and you repair it could end up with you having almost 2k in your pocket to do the repairs and any money left over you can spend on improving the car in another way....
Quick update: Agreed on 2400 value, I got a cheque for 1700 approx after they took their 430 salvage fee and my 250 excess. And they reclassed the car from cat c to a d. Got them to put it all in writing. I bought the bumper and wing from vw heritage, but I'm out the country now so didn't finish off the car how I like before putting it in storage. Anyway thanks all for your help! :-)