Auto Insurance Claims: Im being sued, insurance limits, coverage issue

Question
My fiancee and I are being sued. I am the owner of the vehicle and he was the driver. He was involved in an accident that was deemded his fault. The other driver is suing us for his rental car, 2 days off work and his deductible. Before I got servied I inadventenly found out about the claim and I spoke with my insurance company to let them know that I had not been served but that there was a claim filed. They indicated that as of yet the other drivers insurance company has not asked to be paid. What is my insurance companies responsibility as far as paying the claim? And does the claim fall under the "property damage" section of my insurance limits? I am concerned that the cost to fix the other drivers vehicle was close to my property damage limit. Thank you for your response!

Answer
It would fall under property damage.  Your insurance company would be responsible for handling the claim up to the policy limits as long as the accident was reported to them in a timely manner.  If they have lost their right to investigate and properly defend, then you may have a coverage issue.