Last night I was driving home and exited a three lane roundabout onto a dual carriageway. There are traffic lights on the roundabout and they had been on red so I wasn't going very fast as I pulled onto the dual carriageway. A lorry had pulled out on the entry slip in front of me, and the exit was obscured by his trailer so I stayed slow.

I indicated to leave the roundabout and there was a car in front of me with normal rear lights displayed. I presumed that it was making forward momentum the realised tha tthis was a parked car, one cars length from the roundabout on the inside lane of the dual carriageway. They had their driving lights on, but no hazards, indicators or brake lights, so it wasn't obvious that she was stationary initally.. I tried to pull into the outside lane to avoid hitting her, but there was a car travelling at speed in the outside lane, so I ended up rear ending her. Due to trying to overtake, I hit the drivers side corner of her bumper with my nearside headlight.

She was an elderly lady who had stopped there to read her map as the road she should have travelled on was closed and she was confused as to where she should be and couldn't see any of the large yellow diversion signs placed at regular intervals around the roundabout.

I phoned my insurance company this morning and they want me to admit liability and write my car off.

I have taken my car to a reputable garage. He needs to inspect it properly but thinks that as I was not travelling fast, I just have some repairable body damage and nothing major or strutural. He will confirm this once he's had it over the pit etc.

He thinks that he can repair it very cheaply by using parts from the scrap yard and heating the wing/ bumper and moulding back into shape if nothing untoward has happened to it, and replace the headlight unit which is the main damage.

The car is a diesel Focus with 140,000 miles on the clock and is serviced every six months, it has new tyres and full year MOT and has never let me down.

Whilst I fully understand that I should have been travelling slow enough to stop, she should surely have to take some responsibility for parking in a dangerous place. She was not broken down, merely reading a map and could have moved much further down the road and into a pull in. She did not have her brake lights on, or hazard warning lights, or indicators and admitted that she was confused and didn't know where she was.

So ..... advise please ....

Should I admit liability? Have photographs of the accident area, with the debris ont he road and clearly at the junction, but nobody stopped, so it's her word against mine. I feel very strongly that she was parked in a dangerous place and that she should take some responsibility for the accident.

Should I scrap my car, or pay to get it repaired? The insurance company were not bothered about coming to see it, they suggested that it should be scrapped, and offered to arrange salvage. The agent suggested I got an unoffical quote for repair first which I can then submit formally if is not too high. The problem is the mechanic said that he could do it cheaply if I had replacement parts from the scrapyard, but the insurance company would want new which would be more expensive.

I am insured fully comp, so will now lose my no claims.

Neither of us were hurt because I wasn't going fast luckily, but it looks like I may lose my car unless I pay for the repairs, along with my NCD.

At the moment I am not quite sure exactly what my fully comp insurance is for

Advise please?