What do I do??? Please help !!!

I just want to say this is my first post and it is a messy situation so any advice would be much appreciated. I was involved in a two car accident in May 2007. The driver of the other car had a stop sign and stopped quickly and preceded into the intersection as I was crossing the intersection, I had no stop sign. I hit her back passenger door. The police were contacted but did not come due to a high speed chase in the area. So there is no accident report. We exchanged information and she drove away and I had my car towed. Long story short my claim was denied by her insurance company. I have been making my monthly car payments on the car as it sits in a junkyard. Her insurance company is now taking me to arbitration court for damages to her car, now seven months later. I am now sitting here seven months later with a denied claim and still making payments, is my insurance company responsible for any of the damages. I did have full coverage and Minnesota it is no-fault state. I am just wondering what I can do.... Any advice or suggestions would be great!! I am just fed up with my insurance company and just want to resolve this.