Lol i am aware of what car insurance is for, i dont think its very good if his zed gets cat n, which will also make the car more difficult to sale in the future, due to the neighbour, lets hope its not structural
I think if your zed is going to be cat n, your neighbour should be paying for the repairs out of his own pocket and not putting it through his insurance, take my hat too you being so calm about it becouse i don't i would be, hope things go okay