small claims court, auto insurance pays the settlement due, how does this affect my credit?

Okay, i got into a car accident about a year ago. This lady is suing me now. my auto insurance company has tried to settle this with her before going to court. She won't accept it. I was told that my insurance will pay for the settlement but if the claim has to go through court, this whole thing will somehow go on my credit report. I have really good credit right now. i think it's up to 746 right now. Do you know if and how this will affect my credit?