My daughter was driving her friends car (at the friends request) her friend was not in the car with her. She?

had an accident - no tickets were issued. She was taken by ambulance to the local hospital (away at college) and checked out because the air bags deployed and her neck hurt. We notified our insurance co. They covered the medical, but said that the rest must go through the friend's ins. co. Apparently it is costing $4,500.00 to fix the car - they have a $500.00 deductible that they want us to pay. I need advice and fast as she is reaking havoc on my daughter away at school, so much so she has involved everyone. My daughter has her own car and drives it always - it's just this one time and it has caused such heartache.