Auto Insurance Claims: Check for Repairs, auto repair shop, car damage

Question
My accident involves me pulling into a drop off zone at the side of the curb.  There was an available space in front of another car, which I noticed. As I pulled in, the other driver seemed to pull out. Nailing the side of my car's front fender. I pulled forward to avoid creating a traffic jam in this very popular morning drop off for commuters, the other car's front driver side bumper caused further damage across the ride side of the car. Damage occurred from the front fender to the rear tire.
We exchanged information, and then called our corresponding insurance agency. Little was said during the exchange.  While I believe I was not at fault since she hit me, she told her insurer differently.  In fact my insurer agreed with me and took no responsibility and her insurer took none either.  After interviewing me on the phone and not seeing pictures that occurred her insurer claimed that it was my fault due to a misjudgment of distance from her front bumper and my car.  My insurer told me that incases like this no one is at fault.  My deductible is high and I know it was her fault?  How can I further reiterate that, even though my damages suggest it is her fault. Meanwhile my insurer write me and the body shop a check for the damages caused.  While trying to work out the difference.  I am considering buying another car and trading in my damaged car, and using the check as a down payment.  Can I use a check written to me and the body shop as a down payment toward another car, since there is no lien holder on my current car.  I don't know how I can proceed since I have a check written to me and the auto repair shop.  
Is there anything I can do to further show the incident was not my fault without a witness?  Thank you for your website.

Answer
Hi Don,

Unfortunately, it is your word against the other drivers word. There is not much you could do except to file a lawsuit against the other driver and if the judge thinks you are more truthful than the other driver he/she may find in your favor or may decide that it is 50/50.

As far as the check is concerned, you should contac your insurance company and tell them that you have no lienholder and you want them to reissue the check in only your name. Since you have no lienholder, you are not obligated to have the vehicle repaired and you can do what ever you want with the money.

I hope this helps
Richard Hixenbaugh