Yes, you can drive the car. ABS keeps the wheels from locking up, so be careful when the pavement is slippery. If you have traction control, ABS also feeds that system so that wheels don't slip when giving it too much gas.

The ABS module is behind the driver's side fender, close to the dash. There is a wheel sensor on each wheel which can get knocked out of alignment. Don't think a side swipe will do anything unless the wheel was hit pretty hard.

Unfortunately, most scanners do not read the codes for the ABS. Call some Volvo shops and see if they will scan the car. Dealers typically charge and hour's worth of labor ($140 in the Twin Cities).

Stonybrook just bought a scanner that might work:
https://www.brickboard.com/AWD/volvo/1618117/V70-XC70/scanner_tool_srs_light.html

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My back feels better when I sit in a Volvo seat