I'd total the car out, get the payment (around $2200), buy the car back(about $200), fix whatever broke(or sell it and buy another one in better condition), and use the rest to upgrade the car.
I had my 280z totaled out when an old asian lady smashed in my front right fender.
It was 100% driveable, no alignment needed, i pulled out the dent, and it's been perfect fine ever since.
Apparently, a fender is more than 50% of what they value the car at.
I live in Vegas, and that's where I had my accident occur as well.