do NOT let them take your car! just becaues they totalled it out doesn't mean you can't keep it! that car with its mods is worth a LOT more then what they will be willing to give you for it. most insurance companies only insure the stock value of the car. you are the one who will eat a huge loss if you let them take the car away. let them total it out, and buy it back. ull be out a bit but its alot less then the 7 or 8k u put into it. there SHOULD be an option to buy it back after they've totalled it!
good luck!
