Auto Insurance Claims: Insurance Claim Problem, insurance claim, insurance info

Question
This is kind of a long story but I'll make it as short as possible.  

Back on October 8th of last year, I was in a car accident, my very first car accident.  It was my first day at a new job.  I was getting ready to pull into the parking lot on the other side of the road.  There were 2 cars coming and I stopped and let the first one pass.  I judged and thought I had time to pull in before the second car finished coming down the hill.  When the front of my car was just pulling into the parking lot, the other car hit me.  She never even saw me.  Though the accident was my fault since she had the right of way, she was doing about twice the speed limit (25).  I say she was speeding because when you're doing 60 miles an hour, your car moves 80 feet a second.  She was about 150-200 feet away from me when I started pulling into the parking lot.  Her car hit the front corner panel of my passenger side and did little damage to my car but smashed her front end up pretty bad.  The police came and though I was at fault since she had the right of way, I wasn't cited for anything.  We exchanged insurance info and went on our way.  Due to health problems I haven't been able to work since November.  I received a letter from her insurance company stating that my insurance company only covers $10,000 in damages and the total damage they're claiming is $10,995.  The letter claimed I had 10 days to respond.  So I called them and explained to the lady that I was unable to pay and had no income.  She claimed that I could afford $20 a month and that she would send the paperwork.  I called my insurance company and they said not to sign anything and that they were waiting for a "release" from hers.  Until the release is signed, the claim isn't settled.  I have since received letters from her insurance company threatening to take me to court over the $995 but they still have not accepted the settlement amount from my insurance company.  It's been almost 7 months now and I don't know what to do.  My insurance company just keeps telling me they're monitoring the status of the claim and will notify me when the release is signed.  Her insurance company keeps asking me for money.  This is my first accident and I have no idea how the process works and I don't know where to turn.  Please help!!!

Answer
Hi Jennifer,

You should write a letter to the insurance company that is asking you for money. You should tell them that your insurance company is handling this matter and they are not to contact you anymore and that they should only contact your insurance company. You should also send a copy of that letter to your insurance company. You should not have any further phone conversations with the other insurance company. Anything you receive from then should be sent to your insurance company.

Your insurance company is trying to settle the claim for just the amount of your coverage ($10,000.00). They will not pay the $10,000.00 until and unless the other company signs the release form. Just let your insurance comapny handle everything.

I hope this helps
Richard Hixenbaugh