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Credit hire claims are a very litigious area; the other side is always going to argue that "you should have a 1.2 as that's the equivalent, therefore I'm only paying £X" kind of thing.
Good article here
It's not just solicitors who cream it in; credit hire, assessors, medical staff etc do too. More often than not, the fees add up to much more than the overall claim (repairs and everything else).
Phone M and N (01453 860 153) if you're in Bristol - they'd probably trailer it and lend you a car for less than that, and they're a bit closer than K-Tec. Surely there would be some kind of warranty with the other garage though? :S
Just quickly looking at some quantum reports, that doesn't look to be too bad. I still would go for a bit more though as they're always going to try and get away with as little as possible ;)
As Da said; you would be £3k up. It's not like you've been to see private physios, cancelled your £3k...