Insurance company and collection agency harassment

*** I apologize in advance for the length of this post. I just wanted to include as much detail as possible. --- cd

What is the name of your state? North Carolina

On 8/3/2001, Returning home from vacation (4 hours away) I approached an intersection and stopped for the stop sign. It was raining very hard. Once I made certain that the intersection was clear I proceeded through. I was about half way into the intersection when I saw a car approaching to my left without headlights (a violation in N.C.), so I sped up and continued through the intersection. About an hour later, as I pulled off the highway on an exit ramp, a car pulled up beside me. A man jumped out and started yelling that I had caused an accident back at that intersection but that no one was injured. I said that I didn't see any signs of an accident and I continued home. He then apparently took my license plate number, because about a week later, an officer of that county called my house to take a statement. (The above is exactly what was told to him). He informed me that there was no damage and he was just taking a statement. No charges were issued. The statement would be mailed to me and I was to sign it and return it. This never happened. I heard nothing else on this matter for over 6 months. Then I began receiving letters from an Insurance company seeking to settle a claim of $5785.00 in damages.
I took it to my insurance company, who told me that they would pay it if I wanted but agreed that since no charges were filed and I claimed I wasn't at fault, it was up to me. Not wanting my premiums to increase, I declined.
The other insurance company continued to send me letters for about 6 more months before I began receiving letters from a collection agency in Florida.
Now the collection agency has been phoning me and threating to revoke my driving priveleges because my "vehicle was being driven at the time without insurance coverage." Which is completely untrue.
I still feel that I was not at fault. I have yet to receive a copy of any police report and I think that $5785 is large contradiction to what the officer told me on the phone.

I applogize for the length of this Thread, but I just wanted to give all of the details

I guess my questions are, am I liable for this charge? What can I do to keep the DMV from revoking my license? How can I get these extortionists off my back?

Any advice would surely help.