Auto Insurance Claims: Should claim be denied?, small claims court, grey areas

Question
2.5 months ago I was rear-ended by a truck.  We were sitting in traffic and were not moving more than 15 mph.  She claimed she was hit and pushed into me, and that the truck behind her drove off.  I saw the truck behind her leave but am unsure if he actually hit her.  It took her insurance company 2 months to take pictures of her bumper.  She had very minimal damage, so little that she does not want to get her car repaired.  Unfortuately my bumper is plastic and is split and needs to be replaced.  My deductible through my insurance is greater then the cost of repairs so I am on my own trying to get her insurance to pay for my repairs.  I got a letter denying the claim stating that since their insured claimed she was hit into me that they are denying my claim.  Does she not carry any liability for not maintaining space?  The lack of damage to both cars should show that we were moving at a low rate of speed.  Do I have any chance of getting her insurance to cover damages after they have denied my claim?  I feel like the little guy fighting the big insurance company!  

Answer
What a frustrating situation.  There are a lot of grey areas here.  The driver that hit you is responsible for maintaining space, but only the space needed to safely operate her own vehicle.  Did she have damage to the rear of her vehicle?  I can't see how even at 15 mph, a car could be rear ended hard enough by a truck to push it into another truck and not have significant damage.

I would get the name of the local claims manager.  Not the adjusters supervisor, but that person's boss.  I'd write a letter explaining that the damages do not back up their insured's claim and demand payment for your bumper.  Explain that if they do not pay for your damages within 10 days, you will be filing suit in small claims court.  If they do not pay, then I'd follow up promptly and file.  

Please let me know how it turns out.  Good luck!