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That sucks, but glad no one else got hit.
If it was me I would haggle a bit more for the cars value. Oddly insurance companies go for the lowest payout. Simply disagreeing the first offer will get you a bit more in the right ballpark price wise.
As far as what to do afterwards, it's up to you. Yes it can be fixed. But you'll always know it was wrecked. That would eventuality hurt resale. the other options is to go car shopping again. Maybe it's time for a change or to hunt down another 86.
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New daily driver - Subaru BRZ Premium
Weekend fun/track car - '91 MR2 Turbo Gen3
Old daily driver - '88 MR2 Supercharged
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