Auto Insurance Claims: accident claim, collections agency, post dated checks

Question
I was in a n accident not long ago, & my insurance told me my payment was late & they wouldn't cover my claim.  Ok - so I contacted the other person's insurance, explained my insurance wouldn't cover it, & offered to begin a payment plan.  The company (State Farm) wouldn'tspeak to me until the claim was closed.  When I recieved a letter telling me I had to pay almost $4,000 for a dent in a '96 van's door, I wanted to know what the $$ was spent on.  All the while, I was sending $50 payments each month (all I can afford).  All the sudden I was contacted by a collections agency telling me they wouldn't accept my limited payments & my liscence would be suspended unless I entered into a contract to pay hundeds of dollars amonth.  Can this really be happening? Can they do this? Who do I go to for a resolution?  I still have not recieved an itemized list of repairs, now I will lose my liscense??  Thank you for your time in answering my question.  I just can't believe that I'm the only one that's been bullied like this.  There have got to be millions' of Americans everyday who have accidents & only can pay small amounts towards the bill!

Answer
Hi Christy,

It sounds like State Farm just did not want to deal with this any more so they sold your debt to a collection agency. I do not think they as long as you are making regular payments they can have your license suspended. They are just trying to intimidate you.

You should only deal with these people in writing. Do not discuss any aspect of your claim over the phone. If they call you tell them to put their position in writing. When they write to you, you must respond in writing in a timely manner, say within 10 days. DO NOT under any circumstances give these people access to any of your bank accounts. DO NOT give them any post-dated checks. In either case they will clean you out. Simply tell them what you can afford to pay and then be sure to live up to the agreement and make your payments on time.

Also you should demand that they send you a detailed repair estimate and photos of the damage. Then you can verify that things are accurate.

If you receive any kind of law suit papers, you need to be sure to reply or have an attorney reply for you in a timely manner.

I hope this helps
Richard Hixenbaugh