The answer to this part it yes. After having several claims and even suing one guy in small claims court, I can say that the law (and insurance company) will give you the money to compensate you for the estimated damage, but then you are free to do whatever you want with that cash. In the small claims action, the other guy said "but your honor, he isn't going to fix the bumper on this old beat up car, he is just going to take the cash and pocket it (which I was)." To which the judge responded "you pay him for the damage you did to his car and what he does with the money after that is none of your business."

Good luck.

The thing is, she filed the claim with HER insurance. I don't think she's filing it against me. I think that she just wants to pay her own deductible and have her insurance pay for damages.

I hate to be this cynical, but it doesn't matter. She has filed a claim and her insurance company will find out who your insurance company is. And the the fact that they want to take a statement from you is concerning. It could be a simple part of the process, or they could be looking for a mis-statement from you. Look, the earlier poster is correct, in 99% of case where you are rear-ended, it is the other drivers fault. That doesn't mean her insurance won't try to save a few dollars by shifting blame to you. Get your insurance company involved, they will work for you. If it comes down to your word versus the tactics of her insurance company lawyers, your playing a dangerous game.

Funny thing is, we both use the same insurance company. I'll call my insurance tomorrow.

I believe if the damage is more than $500 in California you must notify the Department of Motor Vehicles, report of accident, form sr1A. The form is available on line at www.dmv.ca.gov/forms/sr/sr1.pdf.