Auto Insurance Claims: Other drivers fault and wont pay, insurance situation, friendly letter

Question
I was involved in a minor accident last Christmas. I was waiting to make a left turn from a gas station. There was another vehicle infront of me waiting to make a left turn as well. Suddenly the driver of the SUV started backing up. I honked three times to alert the driver but still hit my front bumper. I felt that she tried to get away so I honked louder to make her stop. Finally she did, got out of her vehicle with her husband. It was an old couple. They apologized and seemed concern because my 10 month old son was in the backseat. We exchange information and I called their insurance company the following day. They told me they havent reported the accident so they will call them. That night the driver called me to check on us if we're ok and if the insurance company took care of the claim. I told her what the insurance co told me and she said they havent heard from them. I called the insurance co the following day just to be told that her policy was cancelled due to non payment 3 days before the accident and that they informed them that if they pay they can reinstate the policy and process the claim. Its been more than  a week and I have not heard from either the driver nor the insurance company. I tried to call the driver and I just got their voicemail so I left a message. That was 3 days ago and I have not heard from them. What shall i do at this point?

Answer
What the insurance company told you makes no sense.  The policy was either paid up and valid on the date of loss or it wasn't.  There is no such thing as making a payment to restore coverage in the past.

If your vehicle is drivable with minor damage, I'd give these folks 2-3 days to straighten out their insurance situation.  If you don't hear from them, get a couple of estimates for the repair, send them a friendly letter requesting payment for the lowest estimate and give them a week.  If they have failed to make payment arrangements with you within 10 days, then they have no intention of doing so.  If the insurance is still invalid, you file suit in small claims court.

Good luck!