Suggestions to do with a damaged vehicle

The insurance of the responsible party declared my vehicle (1991 Ford Escort 2D LX), which was damaged in a minor accident, a total loss. Or, more likely in their terms, costs more to repair and they cannot seem to be able to afford the repairs.

My questions are: is it possible to sell it to somebody who can repair themselves? The only damaged parts are the body and bent axle in back, but the engine and other stuff are still in good condition. If the damaged parts are repaired, then the car is in very good shape.

I was offered to sell my car to salvage but I'm wondering if I could do this differently because the market value of my car is more than 1,500 dollars worth.

Would DMV or any other places provide auctions for me? I'd like to view all other options before I just sell it to salvage for a measly amount. I just feel the car is repairable by skillful mechanics, it's just that the insurance (not mine) doesn't want to pay for it.

I live in Los Angeles area.

Thanks for any suggestions or feedback you may have.