My dad's car was totaled about 10 years ago and I think the insurance people were just lazy because they cut him a check and moved on, he still drives it never had the title affected or anything. They are supposed to make you change the title, and have it inspected, calling the state highway patrol would get you on the right track to some better answers as I beleive they usually do the inspections. As far as I know they are just concerned with safty equipment and roadworthyness, leaving a lot up to the inspector.
The insurance will give you a payout based on what the car is worth minus what they think they can get for it wrecked. The one car I had totaled like that I just let them take, they gave me $2k more then what I had in it so in that case I didn't care.