More importantly, how are you? That must have been quite an impact to have wrecked your frame to such an extent.
Insurance needs to put you back in the same position as you were before the crash. If you do decide to get the frame repaired, there will the considerable cost of stripping down the bike (why should you do it?). Then you have the actual cost of the frame repair, which will not be inexpensive if done well, the cost of putting it all back in one piece, and you really ought to have a hire bike for the period of the repair. Add this lot together, and I think you'll agree that it makes sense for the driver's insurance to quickly fork out (no pun intended) for a brand new bike.