Insurance companies always pay ACV (Actual cost value)  on a vehicle in case of total loss. If the title is salvaged it will definitley lower the value of the vehicle. Find out if this incident will be included in the CARFAX report and will lower the value of the vehicle in anyway. Most of the times insurance companies go with the regular market value (they won't know if the vehicle has salvaged title). The point is, they will go with the ACV in case of total loss, they will pay you how much they think it will cost in the market.

However, in your case, since your car is not going to be worth much, I do not recommend buying the comprehensive and collision insurance.