Getting sued over no fault accident?

Let your insurance company handle it. They have lawyers that will be defending your and your policy. At this time, without knowing the full extent of what happened, I would personally agree that this was not an at fault accident. I have seen this happen where I work. Even though she may have been at fault in most every case, blacking out and not being able to control a vehicle at that point is not any indication she was liable. The question I would have though is why did she black out? Was she drinking or taking drugs? Was she under any medication that could have impacted the driving? Has she had any preexisting conditions where this has happened before? If any of those are the case she may have negligence. But if she just blacked out, for the first time, not caused by anything she did or any preexisting condition, then I would agree she has no liability in this loss. If your insurance company though does decide to still pay the limit on your policy they should get a signed release from the other party indicating that is the final settlement for this loss. Remember, your insurance company is there to protect your interests. They may end up paying the limits even though you have no negligence in order to prevent the other party from coming after your ets. Discuss what will happen with your claim rep.