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Depends on the policy - some insurers will only pay out what it would cost to repair the car to standard regardless of mods. Check the small print and see if thats on your policy somewhere.
Yes, I did a couple of years ago. Total nightmare and the accident wasnt my fault which really ticked me off. Took nearly 3 months to get my car fixed thanks to them and the underwriters dithering around.
Sounds like a bad un. Ive heard horror stories about this sort of thing before. Be prepared for a long haul even if shes fully comp insurance companies drag their heels over this sort of thing.
My old Cinquecento turbo. So many bad points - poor build quality, dodgy handbrake, ate brake pads and spark plugs, but it could really shift and had bags of character. Great turn in and sharp handling too.