I too have dealt with severe insomnia, and it made me psychotic. I was prescribed Olanzapine and that was effective, but with serious physical effects. I guess it's unlikely that it's legal wherever you are, but you could look into weed to help. Specifically, Indicastrains. They have higher CBD content which is a natural anti-psychotic and they also are analgesic and anti-anxiety. It may not work for everyone, but personally I vaporize some good indica weed every night, and since doing so I have been able to get off medication with no withdrawal symptoms (I was on 15mg of Olanzapine, and when I first reduced my prescription without using weed I experienced horrible withdrawal symptoms). At the very least, I recommend doing some research. Here's just one article that expounds on the benefits of CBD: http://psychcentral.com/news/2012/06/07 ... 39803.html
Good luck!