The lady was fully covered?
Whether or not your car had salvaged title, the insurance should make sure you have a vehicle and aren't left stranded, whether they rent you a car until they wanna fix ur car, or if they wanna find you another salvaged title car, but I think that if they don't wanna cover the car you can fight it, cuz your wife is out wheels, and it's the old lady's fault. Salvaged title or not it was reliable wheels.
Did you talk to her insurance company yet?
Your insurance company should have nothing to do with it if the lady was fully covered, as it wasn't your wife's fault. If you try to get from them your ins will just go up, that's why you gotta milk the old lady's ins. At least for a set of wheels.