Its kind of hard to tell from a cell phone picture but in photo #2 it looks like the front wheel is canted in quite a bit, maybe the perp hit the front wheel and bent the control arm? I know it doesn't take much of a change in front suspension geometry in a W124 for the car to feel really weird.

The damage looks very fixable but I'm guessing the insurance company will total it out, you should be able to buy it back for around 1/10th of the pay out.

Make sure the insurance company knows how much work you've put into the car and its overall condition - I'd print out all the thread you've done over the years here that detail all the work done to the car.

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