Go to a third party. I would say a head gasket because Toyota has always had trouble with that.
1. Please do check to all headlight mounting and tighten those up. And it's a different parts then the adjuster screw. 2. The camshaft bushing is at side not back. Seems it's the head gasket. 3. Please do adjustment to the window glass regulator, it's notback and up enough.
If your car failed the ASM California test with elevated HC, it is best to perform proper diagnostics to identify the cause, then repair the cause.
Assuming that your car in fuel injected, here is a list of POSSIBLE failures --
1) Vacuum leaks
2) Excessive advanced ignition timing
3) A MAP or MAF sensor slightly out of spec. voltage
4) Excessive engine coolant temp
5) EGR valve pintle stuck open
6) Restricted fuel filter
7) Failing fuel pump
8) Failing fuel pressure regulator
9) Sleepy, lazy or otherwise failing oxygen sensor.
10) Contaminated engine oil
11) PCV valve in need of service.
12) Failed or deteriorating catalytic converter
There are many other items, but they are generally related to the above list.
It is money saved to take the car to a LICENSED emissions repair and test facility, and ask that they run a diagnostic routine for the elevated hydrocarbons. Take the failure report so that he can look to see what he is chasing.
Most shops will perform this task for about an hour's worth of shop time. The repairs will be on top of the diagnostics.
One of the things that the tech can do with the report is to calculate the "LAMBDA" factor. This will tell him if the engine is in good fuel control or not, and if the primary cause is in the fuel control or if it is in the catalytic converter.
If you believe you are being taken advantage of, call the Bureau of Automotive Repair at (800) 952-5210 and ask that they investigate. This is your tax dollars at work. Use them.
In the mean time, if you are trying to get the license renewed, pay the fees. It is the State of California, they will take the money! That will stop the penalties at DMV. You won't get a sticker, but you will be paid up. Ask for an extension for driving. This will get you about 90 days more to make the repairs and pass the emissions test, or make the decision to trade the car in for something else.
Many things can cause a car to overheat and loose coolant. They can all be addressed, some not expensive some a little more so. The big problem you have is the white smoke. Is it coming from the tail pipe? If so you have overheated the engine badly enough to warp the head and blow the head gasket. If that is the case I would not recommend trying to fix it.
could be head gasket, valve cover gasket ,or soft plug
they dont normally pay full value for a repair. they'll usually account for depreciation. example... if life expectancy is say 10 years, unit goes bad in 5 years, they pay for half the repair.
also, they may instruct the mechanic shop to put in a used item rather than a new one. we used to see this a lot working in a transmission shop where the insurance company would send in a junk yard unit and they would pay to have it installed. customer would pay the difference if he wanted new.
there may also be waiting period involved. they dont want to cover something that's bad before you got this extended warranty. most companies will not caver vehicles after a certain age
also... every company i've seen has a cap on the amount allowed for a reair. they're not going to buy you a new car if the fuel line leaks and the car explodes.