Auto insurance question for someone sharp?

My car was plowed into by another car going 40 mph. The car needs a new bumper has bent metal , muffler damage, paint damage...the list goes on. The other party accepted liablility. The auto dealer where I dropped it off said it could be fixed for under $500 LOL. The police and my husband thought the damage was at least $2,000. I called to ask about the low price and they said they were not sure if it needed a new bumper. The bumper is totaled. What advantage for the insurance company/auto place would it be to not fix a car properly. BTW I'm injured too and was taken away by ambulance...still can't move my neck. Please help.