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Rust free and Land Cruiser don't often go together. You are more than likely going to have to go to a hot rod/ custom shop to get the repairs done properly. I ran a shop like this for a couple of years and in So Cal, and we always had an 80's Land Rover in. Once you find a shop willing to do the work, submit a written quote to the insurance company and they will review. The insurance companies, and their staff, do not really care how much the repairs cost, just that they have the required information to substantiate any payments made.
If they have trouble finding parts, I was able to source good parts out of Utah. I will try to find the name of the yard. It is a 40 year old car and parts are a pain in the ass to get, especially compared to new cars, so production shops are not going to be interested.
Litigation is a waste of time and the only ones that get paid are the lawyers. Find out what the adjuster needs to get you paid and try to work with them. I realize it is not your fault and should not require you to jump through a series of flaming hoops, but going straight to guns means you claim goes to the back burner and will take forever.
If you go through your insurance, see if they will waive the deductible. If they do not, pay it and have them include it in their subrogation claim to the negligent party's carrier.
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