I would recommend going with insurance incase she tries anything on again, as she sounds like the type who would from things she's already said.
However, just a heads up and something to bare in mind..... If you go through insurance, your renewal premium will go up by a small amount even if she is 100% at fault whether by her own admission or by insurance companies decision.
This happened to me after a woman drove into the back of me a few years back. She admitted she was 100% to blame and all repairs went through insurance fine. Then when my renewal came it had gone up . I questioned it and my insurer told me it was because I'd been involved in an accident. I went nuts and said that she had admitted fault and I'd been stationary. They said it didn't matter, as once you've been in an accident, whether you are to blame or not, you are considered to be a 'higher risk' to insurance companies . Also you have to declare it by law for 5 years and this info is held on the insurance database , so going to another company doesn't help. I researched this after being told and sure enough it's true. It's crazy and so unfair!