Friend wrecked my car now what?

I know that "none of the good deeds go unpunished" but of course in the heat of been a "Good Samaritan" i gave my car to a friend to drive until her car getting fixed in my garage. It lasted about a week and a half and she wrecked the car. Damage to other vehicle = none, according to her. My car is hit in the front radiator leaking and the hood and one of the headlights is smashed. She got a verbal estimate from some guy to fix it for a grand,(she is willing to pay me) which I doubt is enough because I am positive she overheated the engine on multiple occasions after the accident because she have told me she kept driving it until smoke came out of the engine compartment few times then she called me. I suspect that engine is a toast - the car is 95 Escort wgn with 200k. But I really babied that car and it was running almost (considering the age and miles) flawlessly.
Her insurance company said they will only process the claim as a secondary insurer and my provider will have to be a primary because the insurance follows the car not the driver - their exact words. I don't even want to call my insurance and ask because i suspect my rates will go way up and I have two teenagers in the house.
Any suggestions?
Thanks!