husband hit car backing out of parking space no insurance at time of accident

[mrslvd]

What is the name of your state? What is the name of your state? California
backing out of parking space husband hit a passing car. Gave insurance information that was cancelled at time because of non payment. Person he hit went through collect angency for help. We never received billing for repairs which we are willing to pay. Now collection agency is asking for a payment of $1000.00 in cashier check or they will file plice report for insurance fraud. They want full payment in two days. What do we do and what options do we have.

 

[JETX]

Though I strongly suggest that you resolve this matter with the damaged party, you have NO obligation to do so through this 'collection agent'.

Just the fact that a collection agency MAY be involved (seems unlikely), I would tell them to go ahead and do what they want. My reasoning:
1) The debt collector can't report anything. They aren't the damaged party.
2) The police will NOT accept a charge of 'insurance fraud'. And even if they did investigate it, you could easily show that you were not aware of the cancellation, or confused at the time, etc.
3) The accident was on private property (assumed from your post).

My suggestion:
1) Contact the damaged party directly and try to negotiate some settlement of the claim. Get copies of the estimates. Pay for the damages.
2) If you don't, the damaged party CAN file a lawsuit against you. If they get a judgment, they can then garnish wages and seize non-exempt property.

 

[mrslvd]

thank you jetx

thank you for your info. accident occur in parking lot of supermarket. i will try and contact party as you suggest. thank you again.