Rights under contracts and obligations

Here goes the story, the other party rented our car for 2 months, contracts and aggreement were made between two parties, in the contract it is stated that insurance of the car will not and cannot be used for the damages and accidents caused by their part. But after just a few days on their usage there have been already a lot of damages on the car, they have been pursuing us to use the insurance and we refused to by the reason that it is stated on the contract. Our part decided to cut the 2 months contract to 1 month rental only to prevent further damages on the vehicle. The other party wanted to have all damages repaired outside the casa where the vehicle was bought, we refused to because the vehicle was brand new. since it is not stated on the contract do we still have the right to tell them that it should be repaired on the casa because the vehicle was brand new and that we have the right to decide where it should be repaired because it is under our name and property?