Get some estimates for “shaving” a tire. It typically costs from $25 to $35 per tire.
Inform the insurance company that in order to keep from damaging driveline components that you would expect them to compensate for shaving, in addition to the pro-rated tire allowance, mounting and balancing.
Consult your car’s Owner’s Manual. I believe all/most manufacturers give specifications for maximum differences in the “rolling radius” of all 4 tires. Sometimes it’s given as a percentage, circumference, or a tread depth.
Let the insurance company know of their mistakes/omissions and see if you can get a cash settlement for this addition and then do your own thing to remedy the situation.
CSA