Auto Insurance Claims: Rear ended, auto body shop, dodge spirit

Question
I was rearended by a truck and his insurance company has accepted liabilty.  I faxed a copy of the estimate for $2300.  The insurance company said they want us to use their auto body shop for the repairs to cost less or they may have to total the car.  Car is in good mechanical condition but has a few dings and paint peeling.  It is a 95 Dodge Spirit V6 with 149,000 miles on it.  A used one would cost $2500.  Can the insurance company force me to take the money they offer (which I am sure will be less than what the repair costs would be) or can they force me to use their auto body shop?  I need to know as soon as possible.  Thank you very much!

Answer
If I were presented with this claim, I wouldn't even go and look at the car.  This is an obvious total loss.  
Why they are recommending a body shop that may be able to save it is a mystery.  No, you don't have to use their body shop.  No you don't have to take their offer.  You are free to sue them for more money at any time during the process.

Good luck!