My friend got into a rare situation, below is how it went. Appreciate any advice/feedback anyone can provide:

- One month ago, my friend (ABC) got a courtesy car from dealership while waiting for his car to be fixed under warranty
- while driving the courtesy car, it was knocked and scratched by some other car while turning into a road
- it didnt sound like a big noise/knock, so ABC continued driving thinking it's just a minor scratch
- upon reaching home, only realized the incident dented the front door joint quite badly, and the door is stuck/can't be fully opened now
- incident also resulted in new scratches on the back door (same side of course)
- ABC did inform dealership about this, and they just said nevermind, can claim insurance. without much other details
- now the original car has been fixed and ready for collection, and upon returning the courtesy car, the dealership said will need to claim from their insurance and asked ABC to pay 2k for excess! to fix the dent, scratches etc
- upon more nego, they agreed to reduce the 2k but ABC must provide police report for them to claim insurance
- the courtesy car is well used and already got scratches on the same side doors on initial collection

Questions:
- is the dealership ethical in demanding the 2k excess payment? they can do unscrupulous things, like making a larger claim to end up customer has to fork out extra money and as result, they will end up with not only repaired doors with new paint, plus more profits from the 2k??
- how exactly does this 'excess' work? how they got the 2k figure?
- can ABC file a claim against his own insurance (eg, TPPD) to pay for the repair? instead of having the dealership claim from their own insurance
- ABC offered to fix the damages at his own cost and workshop (without police report & insurance claim), but dealership refused and said must claim insurance. is this usual practice or can we debate further with them? the courtesy car collection form T&Cs also didn't explicitly mention customer can't fix at own workshop
- it's more than 24 hours since the incident, so if ABC does police report now (assume going ahead with insurance claim), he'll be fined 300 etc?
- when making the police report, does it matter how ABC make the story? Eg, if report hit and run and can't identify the other vehicle, or police concludes its ABC's fault, will insurance company end up deciding they won't pay for the damage and ABC must pay for it out of own pocket??

What would you do in this situation? Thanks in advance for any advice.