Andrew -- my condolences on the loss of of your Volvo and the tough luck you are having. Are you not sure how the accident happened? Did you have the 245 insured for collision? - or are you dealing with the other car's insurer?
In any case-if a settlement is due you - you will probably have to fight them some to get anything close to what you think you deserve. I've been through this a few times. Gather up whatever recent service or repair bills. Collect ads (local and otherwise) for similar cars and pay attention to what the insurer presents as evidence of value. In one case the other's insurer listed three ads to show my car was not worth anything. I countered--the 3 ads they cited from 3 publications were all for the same car in poor condition. I got them to revise their offer - more money for the car itself - money for towing/storage - and money to cover the sales tax on a replacement vehicle. Original offer went from less than $1,000 (beautiful '92 940 Turbo) to $2,300 - and I got to keep the car (then sold $1300 worth of parts - interior, engine , trans, wheels/tires and other bits). I am not familiar with the "appraisal" yard you mentioned. Does that have to do with whatever state you are in?
Deal with them as though you know you have rights and don't agree with any first offer. best of luck to you -- Dave