why would a national auto insurance company let their insured tell them what to pay on claims?

We had a young lady run into our truck. Her insurance company is not covering the damage* at her request * to our truck .So we have a 1000.00 repair bill . What should we do? The claim is commonly know as a Mini-tort. and yes the letter does say "AT THE REQUEST OF OUR INSURED, WE ARE NOT MAKING AT PAYMENT"