Auto Insurance Claims: Whos at fault?, blinker, medical bills

Question
Hi, my wife was involved in an auto accident a couple days ago. She was traveling the speed limit going east, on a two way street with a turn lane in the middle. Ahead of her, she saw a car in the turn lane with its blinker on to turn left onto a side street. The car then pulled back into the east bound lane where traffic was backed up, almost stopped. My wife then slowed down, put her blinker on and proceeded into the turn lane, as she was going to be turning left at the intersection. At that point, the other car pulled from the east bound lane very sharply, as to turn where she initially had planned, and subsequently hit her front drivers side headlight and bumper into my wives passenger rear door, tire and bumper. I have filed a claim with my insurance company, yet have told them that my wife was not at fault, and have filed the claim at the other persons insurance company, also stating that my wife was not at fault. Damages to my Wives vehicle are around $1600, and her neck and lower back are sore. We do not have any health insurance other than with our auto insurance, and do not want to have to pay the $1000  deductible for either the repairs to the car nor the medical bills. Please advise me as to what I should do.  

Answer
Who is at fault will depend on how far away your wife's vehicle was from the actual intersection.  In my state, you cannot be in the center lane if you are more than 300 feet from the light. The other party also has a duty to make a safe lane change and yield to vehicles already in that lane.  

Basically, depending on how far it was to the intersection, there may be some negligence on your wife's part.