Car being totaled. Need options...

I was driving my sister's car (yes, I had permission) on my way to work and a lady pulled out in front of me. The cops were called and even though a citation was not issued, you can clearly see on the police report that she was at fault.

The adjuster came out today to look at the car and determined the car is totaled. The car is only worth $1500 and she still owes $1200. On top of that the insurance company said that once we accept payoff our insurance will be cancelled. Our insurance company is Oklahoma Farm Bureau Mutual Insurance out of Craig County. The lady that pulled out in front of me has the same insurance company (It's a small town).

My sister is disabled and lives on less than $1600/month. She has no extra money to get another car.

Now here are my questions:

1) Do we have to accept the car being totaled? Do we not have another option? We have not gotten any quotes to see how much it will cost to fix it yet. We wanted to see what the adjuster said first.

2) Why are we being cancelled? The accident was not my fault. She's not had any other accidents or tickets in the past either.

3) Would it do any good to discuss this with an attorney. Nobody was injured but I still feel like we are being screwed!

Thanks for your time.

Wendy Peek
Vinita, Oklahoma