Bad engine or just leaking oil?

[ecabrett]

I own a 2005 Volvo V70 FWD station wagon with 191K on the engine. It's recently been leaking more than the usual (leaky cam seal) oil and now generates a "NO oil pressure - stop safely" idiot light on my dash!
My fav (non ASE-certified) mechanic who's nonetheless been working on cars for 4 decades, confirmed that the light is good, as he put an oil pressure (OP) gauge on and when the OP hit 6 psi, the idiot light came on. He strongly believes that the "bearing clearances" are too high, hence the low OP and has deemed the engine as worn-out, dead...

https://dh.identifix.com shows otherwise, where the no OP is remedied 87% of the time by simply replacing the oil pan, associated gaskets and oil seals. Replacing the engine (as a solution) came in at a paltry 4% fix rate!

I've been quoted (by an ASE-certified mechanic) that he can replace the oil pan and associated gaskets / seals for around $860. The possibility still exists that my engine is worn (ie, high bearing clearances) and that I would have then spent $860, to learn this.
I have extended warranty insurance that will pay for a bad engine, but not for seals, gaskets and an oil pan.

QUESTION - is there a relatively inexpensive solution to the above dilemma?

[jonesg]

buy this and DIY.

https://www.ipdusa.com/products/20954/O ... M4QAvD_BwE

or, if the oil pan is good just order the seal kit and do it for under $60.

[Krons]

Oil pan/pickup orings is definitely DIY. My experience:
viewtopic.php?p=599876#p599876

At 191k you likely need a timing belt so a good time to address leaking cam seals and do the water pump and tensioner too.