NOW her insurance wants to pay...?

I was rear ended last August by a woman in a mini van while stopped at a light. We pulled over, exchanged info, she admitted fault, etc, etc. After her insurance company sent me to get a damage estimate - about $500.00 - I didn't hear back for weeks. I called and they told me they were trying to get hold of the woman who hit me. Couple more weeks and I call back. They tell me they were denying my claim because they couldn't get hold of her. Called my insurance company for back up but by October they said I was out of luck so naturally I filed a lawsuit against the driver who proceeded to ignore every court summons and date and I got a default judgment and have sent it to the constables to go collect my money - over $1700 now after court cost are added. Suddenly last Friday I get a surprise call from the insurance company asking why I had not cashed the check they sent me. Naturally I responded, "You sent me no check. You denied me." They insist they did but offer to send another for the $500.00. I'm concerned what it would mean for my judgement if I took this money now.