^^^This has absolutely nothing to do with the insurers.
The lady in question lied to her insurance company and stated she was reversed into; when this was presented to the victim's insurance company, they told he to do one - what then happened was a lot of to-ing and fro-ing between insurers as to who was liable, which eventually went into the court system. NONE of this would have happened has the lady told the truth in the first instance.
The lady in question has probably moaned over the years about the cost of her car insurance, and then caused an accident and signed-up with a credit hire company - these companies are one of the causes for the cost of insurance increasing.
The clue is in the name - to all intents and purposes they are extending credit, in the hope the person they are extending credit to will win, and then they will recoup the cost of the car hire; if the person doesn't win, then that person must pay the cost of the hire.
The example in the link is extreme, but I can remember a few years ago my BIL being shunted in the back of his 10 year old 3 Series, and a credit hire company gave him a brand-spanking new X5 to drive for three weeks, at about £500 a-day - so £10,500.
People should always act as a 'prudent uninsured', and all people have a common law duty to mitigate their loss, so quite how they get away with this sort of thing baffles me. People should ask themselves a very simple question. "If I had to pay for alternative transport myself, would I hire a car better than the car damaged, or would I hire as cheaply as possible to remain mobile?" The vast vast majority would do the latter, and therefore that has to be the correct answer.