Thats what insurance is for . She was honest enough to let you know , fine . She also has insurance and if the bike has taken damage you deserve to have it fixed . I dont know what the laws are up there but over here in the UK if you do something like that and not report it and u get found out its a criminal offence.
I know I sound harsh but just because someone owns up dosnt meen you have to suffer it . Its not like a car where it dosnt matter its your TBird. If it was a car I can understand it . Thank her very much for being honest and let her know how much the damage is to repair. Also tell her to get her rear view mirrors cleaned.