Auto Insurance Claims: Auto Claim denied

Question
On January 11,2014 I was in a fender bender where a guy backed into me, He admitted he was at fault and gave me his insurance information luckily, I seen a witness and asked her just in case I needed her. I called his insurance company to filed a Claim through his insurance and about a month later I got a denial letter so I called his insurance back to asked why it was denied and the guy flipped his story around and said he stopped his car and next thing he know I rear-ended him and said I refused to give my insurance, and his wife was in the car and of course she vouched for his lie. However, since we both had a witness they still believe there insurer wasn't liable for the damages. They denied my claim twice since the guy lied so its pretty much he/she said stuff. But If I was in the wrong and I refused to give up my Insurance don't you think you would call the police? So I got tired of dealing with them because I wasn't in the wrong and I was wanting my car fixed. So I went through my collusion insurance and paid my deductible and hopefully they will go after that insurance company? But I want to know is there a chance that they will pay it or is it chopped up as a loss. I haven't been in many accidents but the few I had, I've never had this problem. What should I expect? or Is there anything else I need to do? Thanking you in advance.

Answer
Once your insurer pays for your damage, they can file arbitration against the insurer who denied your claim.

Your insurer needs to get a recorded statement from the independent witness.  If they do this, they will have a strong chance of winning if they file arbitration.  If the arbitrator sees a statement from a biased wife/passenger, it will not carry nearly as much weight as would a statement from an independent witness.  If they do not get the witness statement, there is very little chance your insurer will win in arbitration.