A friend had a similar situation on a car that his daughter hit a deer with. The salvage yard that was conveniently next door to the towing operation offered him $200 for an '01 Cavalier. It should have been about a $3200 car. I brought it 100 miles back to town with my trailer. He had it fixed locally with used parts for a total cash outlay of $800. You do the math.
Get that second opinion. IF it needs an engine, get one from a salvage yard and find a good backyard mechanic to put it in for you. Some salvage yards will do it for you. Try www.car-part.com for an engine near you IF you need one.
Will AAA pay for the second tow if you upgrade after the fact?
I prefer to have roadside assistance on my car’s insurance. It costs me about $2.50 every six months, and I don’t have to contribute to AAA’s political agenda.