I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
The first thing to do is call your insurance company. If you had insurance on the date of the accident, they are contractually obligated to defend you AND to pay any judgment. The reason she failed in suing your insurance company directly is because they're not the right party to have sued - the insurance company didn't CAUSE the accident. People frequently try to sue them because the insurance company is the one with the money, but that's not how the system works. To get money from your policy, she HAS to sue the other driver. Call your insurance, send them a copy of the Complaint, and they should have one of their lawyers get into contact with you.
I'm going to include some general information on responding to a Complaint, but I'm hoping you won't need it:
You're allowed to file either a general denial, which basically says "I disagree with everything in this Complaint," or a specific Answer, where you go through each numbered paragraph in the Complaint and state whether you admit or deny each allegation. If you don't have personal knowledge of something (like the plaintiff's address), you can state that you lack sufficient information to admit or deny the Complaint. After you review her allegations, you can present your own version of the facts and state any defenses. The fact that she caused the accident is a defense. One of the primary reasons to do a full Answer is that you can then assert a counterclaim asking that SHE be required to pay for YOUR damages.
If you have any questions or concerns about what I've written, please reply so that I may address them. If I did not address the specific thing that you wanted to know, it may not have come across clearly to me, so please restate that question. It's important to me that you are 100% satisfied with the service I provide. Thank you.