they "understand that Ms. Crump did not ask to become part of this investigation," and that they recognize the "frustration of having a vehicle towed and subsequently damaged."
So many words for "lol, yeah that's a them problem, we don't give a shit".
That this is even a matter for insurance is pathetic. The police caused this to happen, it needs to pay the bill, in full, including any costs the innocent person had for the time they kept the vehicle illegally.
Once cases like this drain the police budgets, they'll have an incentive to actually do a good job instead of fucking around and offloading the cost of their stupidity on ordinary people.