Can an insurance company suspend your license?
Question Details: I missed my insurance payment and someone hit my car as I was coming out of parking in front of my house. We called the police and he said the damages were not enough to write a report. Months later the insurance of the other person involved in the accident calls me and says I'm responsible for the damages, over $1,000. If I don't pay they will suspend my license.
The insurance company cannot suspend your license. It can report that you were uninsured to the Department of Motor Vehicles which can suspend your license.
As for the at-fault party's insurance company denying your claim, your recourse is to sue the at-fault party in small claims court for negligence for the property damage (cost of repairs) to your car. Upon prevailing in the case, you can recover court costs which include the court filing fee and process server fee. A monetary judgment can be enforced with a wage garnishment.