question..uninsured driver...

What is the name of your state? CA


Hi everyone. I was in an accident earlier today at school and I need any advice that I can get! Here is the situation:

My boyfriend usually drives my car but he is not insured anywhere. So today at school, when he was backing out, he hit a nice new BMW and made a little scratch on it. It really was tinny. And the lady says that we have to pay for her paint job that MUST be done at a BMW shop...snob....Anyways. When he was backing out, he saw her and she was passing by behind him but she all of a sudden just stopped behind him and he didn't know, so we hit her. Why did she JUST stop?!?! Then there were two witnesses who said they saw the whole accident and said that they ALSO saw her passing by behind us and thought she was just gona go, but stopped for no reason! The witnesses gave us their number and everything, but what's gona happen now? I feel like that lady wanted to accident to happen and stopped on purpose.
The problem is, who's fault is it?? Will we have to pay her for the paint job out of our own pockets? Will my boyfriend be covered under my mercury insurace since it was my car even though he's not insured? Will we be okay and lucky since we have 2 witnesses to testify against her??! I don't know what to do or what will happen! We're students and we can't afford to pay such greedy people! Please HELP! Any suggestion would be great, THAnks!