Dude that is exactly what happened to me, except I managed to shut it off in time so the engine didn't seize. However if they write the car off, it probably doesn't matter.Looking for a value to argue with my insurance company:, No skid plate hit man hole cover and drained all my oil... engine seized within probably 5 or 6 seconds after light came on.
For replacement value the way it was explained to me is that they have software that examines all the current prices of similar vehicles in the area. Problem is at the age of our cars, a lot of ads are "as-is" and they don't allow for that. I think they originally offered me $2000 and we finally settled on $3200 once I argued and also proved that I put new tires on it this year.