If "no points" then no, it shouldn't affect her insurance.
Will be very difficult to fight too, as it will just be her word against the cop's, and even though the law requires "preponderence of the evidence" (i.e. 51% or more burden of proof), the judge will most likely still rule against her (as they just want her $128.75).
Did the light turn red before she exited the intersection? If not and she has a witness to that (<edit>or try to trick the cop into admitting that in court</edit>), she might have a chance of winning. The argument being that lights are only yellow for about 2-3 seconds, and if she did exit the intersection during the yellow, then it probably turned yellow just before she entered so she couldn't have possibly had time to stop.
If the light did turn red before she exited the intersection then just give up and pay.
editted for the visually-impaired