What would I do? Just what you did - report it to my insurance company and let them take it from there.
BTW, I had the exact same thing (although the other driver wasn't a lawyer) happen to me - we also had the same insurance company, and the other person changed his story too. In the end, because you both have the same insurance company, what will most likely happen is State Farm will (of course) pay for all of the damages, although each of you will have to pay your deductibles. You will each be held 50% at fault. So if the damages are less than your deductibles, see if you can settle this on your own without the insurance company.
And no - you can't trust anybody, especially an attorney!