Auto Insurance Claims: Auto insurance threat, auto insurance company, police report

I live in CA.  I had an auto insurance company (based in Illinois) call me asking for my insurance information.  Apparantly, one of their clients filed a claim stating that my car hit her parked car.  I know this did not occur.  There was no police report filed.  They refuse to fax over details on the claim.  Because I refused to disclose my insurance information to them, they threatened to forward my case to the DMV and some state agency so they can suspend my license.  Can they do this?  It strikes me that this lady just picked my car's license plate number out of a parking lot, blamed me for damage to her car.  She gave my license plate number to her insurance, they ran it and got my name/number from the registration records.  My question is: can they do this?  What should I do?  I didn't hit anyone and there is no proof that I caused any damage to this lady's car.  I don't even know who she is! Thanks.

Hi Christine,

You will need to provide your insurance information. You will also need to contact your insurance company to inform them of this. Your insurance company will take your statement and will also send out a damage appraiser to take photos of your vehicle as well as the other vehicle. If there is no damage on your vehicle that matches the damage on theother vehicle then they will likely deny the claim.

I hope this helps
Richard Hixenbaugh