on the face of it, the nsurance companies actions sound a bit odd. they must have known there was finance (you had to tell them). also, the finance company would have required some sort of evidence of insurance to disburse the loan.
also, you can take action against the other driver, assuming he was in the wrong. either his insurance would have to pay up, or you can take him to court. however, as russellw pointed out, you will get piss all out of him for the next 10 years.
if the car was insured for the full amount, and you are not getting any joy from the insurance company, go to the ombudsman. but as russellw also pointed out, you really need to come sort of arrangement with the finance company. this is VERY important. they would be quite withing their rights to lodge a default against you if you cease payments. also, it could end up with debt collectors, court appearances, accrued interest etc.
DONT deal with the finance company (or the insurance company) over the phone. people find it much harder to be 'tough' with you face - to face. also, you will really need to get a name and have some sort of rapport with ONE person. you cant get that on a phone.
good luck mate.
You wash your car like it was your firstborn child, you tend to its needs like it was your own body, you protect it like it's your family, then you drive it like you stole it.
Weapons of rice destruction
2002 Ford Falcon AU3 XR6
1985 Ford Sierra XR4i
1980 Ford Escort RS2000