Crafty,
Oh, sweetie........
Way i see it is that you gave them a chance not to go thorough their insurance.....and not having a hire car whilst in garage too.. and this bullying lovely fluffster is just trying it on.....you can try asking them for FULL payment OTHERWISE you will go through the insurance route.......if he starts creating and making a scene, the cheeky sod....call the police on him. Or just ignore the sh 1 t and go through the insurance route....making sure you tell his wife and upset her, so he gets it back.
Wish i was near you, as i'd make him see the light. Dont get upset, honey and let the insurance companies sort it out.
lots of love to you, my lovely ....yoges xxxx