Can a driver have a right a way in both lanes and not be responsible for his signal light?

Question Details:

I was attempting to turn left into a four lane street from a parking lot driveway. The driver coming from my left in the lane closest to me was signaling to turn right into the driveway where I was exiting from. So as I began to move forward into the street then looking if it was clear of traffic in the opposite direction we crashed in the next lane over. He apologized and said he changed his mind. He decided to go straight ahead instead. His insurance company now says I'm the one who is at fault because he had the right of way. I couldn't believe it! It didnt matter if he signaled or changed his mind. How can a driver have the right of way in both lanes and not be responsible for the controls on his vehicle or drving in a careless manner?

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