Auto Insurance Company Not Paying

What is the name of your state?
California

Dear Sirs,

I rented a car on a business trip. I did not buy the rental company's auto insurance, for I have my own. I got into a traffic accident. I was found to be at fault. My insurance company considered the car a total loss, and offered to pay the rental car company the full cash value for the car. The rental car company went ahead and had the car repaired at their body shop without settling with my auto insurance company, claiming it was cheaper to repair the car than it was to replace it with another car, and put money into it to get it up to "rentable condition." It then wanted my insurance company to pay for the total repair bill, which is $2,000 more than the actual value of the car.

My insurance company balked. Now the rental car company is suing me for the repair bill. It claims that if I lose, my insurance company must pay the full amount.

I'm stuck, although my insurance company says it will represent me in court.

Do you have any advice on (1) what should be my strategy in court? what should I argue? (2) What game do you think is playing out between the rental car company and my insurance company? (3) What do I do in the event I lose and my insurance company refuses to pay the judgment?

Eddy Harris