Auto Insurance Claims: Car Incident. Not my fault. but got bill from other persons Insurance company, small claims court, cell phone number

Question
So this is the case. In a small shopping mall area my husband dropped me and parked his car and waited for me( he does not like shopping) and after i came back to the car we were talking about what next to be done. we were just talking and he did not even start the car. the keys were in his pocket. suddenly a car bumped into our car from rear side and she tried to started to ran away. but my husband got down from the car and asked her to come out. by this time someone from a store(where she was working) came out. since she could not speak english they helped her to share insurance information. since the damage is not that much we did not call the police. at that time only we realized that our insurance is expired and forgot to renew it. the next day itself we renewed our insurance. what she and the family store members told was she could not speak English her husband could talk better english and gave his cell phone number. which he did not even pick up for 3 to 4 days. we left a couple of messages. after sometime he called and told let insurance deal this.
both her insurance and ours called us and we told exactly what happened.
but after two months we received a bill from her insurance company that we are liable to pay for her expenses around $1000 (which is very funny because we had damage to our car and she did it and now she is claiming for her mistake with us)
what do we do now?

Answer
This is difficult because your insurance was expired at the time of the loss.  They will not defend you.  I suggest you call the claim rep, make sure he/she understands your version of events.  Advise you have no intention of paying, and that you do have damage to your vehicle.  Advise you did not pursue your own damages against them because you did not wish to be troubled, but if they intend to pursue you, you will sue the other driver in small claims court.  The insurer will then consider the evidence and decide whether they want to pursue this.  They may decide aainst the legal fees.  If they do pursue, they will sue you, and you will need to defend yourself in court.  In small claims court, you do not need a lawyer.  You can either sue the other driver in advance, or counter sue her if they sue you.  you cannot sue the insurer; your claim is against the driver, but they will defend her.