A car was travelling towards me, the driver kept looking up and down into his lap and his vehicle wasn't travelling in a straight line. I took evasive action and moved slightly left as it was clear we’d otherwise have a direct impact. As we passed, our driver side mirrors took the impact. The driver demanded money for the damage to his mirror, but mine was also damaged so we met stalemate. I stated that we should call the police and he stated that later in the day I should expect an insurance claim. I visited the local police station with my statement and an electronic record was logged. My insurance company emailed me saying that the other driver blamed me for the accident and claimed for personal injury. I had reported this to them earlier that morning, sending a four page statement. The claims handler advised that this was considered a 50/50 incident in the absence of CCTV, witnesses or dashcam evidence. I received a renewal quote noted a massive insurance hike. In the claims section, it was stated that I was at fault. I contacted my insurer and was advised that they had presented an offer to the third party. They stated that the other driver had presented a medical report from a GP, and that in doing so, they could not defend this in a court of law, and had no other option. I contacted the Insurance Cheat Line. They noted my evidence and I was advised that this would be forwarded to the Insurance Fraud Bureau. Given that my proposed new insurance company required details of the claim, I contacted my previous insurer and established that they’d paid out to date, £4085 in respect of the claim. I contacted the Insurance Cheat Line with this new detail and they abruptly refused to add to the file any new information. Given that the mirrors took the impact, it is highly unlikely that the other driver was injured, especially given that speed was not a factor. My previous insurer immediately referred me to the Insurance Ombudsman and would not enter into any dialogue with me. This was because the original claims handler should have referred me to the Specialist Claims Handler when I had contacted them originally. They admit this was not the procedure followed. I'd like to know, given that I had requested police assistance and the driver had driven off after my suggestion, presented a comprehensive statement to the insurer and police station, how within six working hours he could claim personal injury and this evidence is accepted beyond my own. Furthermore, options for recourse against the driver of the other car.