Can an insurance company suspend license for non payment of debt owed to them?

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Can an insurance company suspend license for non payment of debt owed to them?

My husband was in a car accident 2 years ago,
was at fault, got a ticket, paid that ticket. Our
insurance covered all costs and damages done
to the other party. Now a couple months ago,
we received a letter in the mail from a debt
collector saying we owe Allstate insurance
12500, and if we do not pay them, they will file
to suspend his license. They never tried
contacting us before about this or have shown
any documents of proof to why we owe them
that money and that much money for that
matter. Can they suspend his license? Not sure
if we should get a lawyer involved or not.

Asked on December 5, 2016 under Accident Law, Florida

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

That letter from the debt collector sounds like a scam.  Ignore it.
Since your husband had insurance and you said, your "insurance covered all the costs and damages done to the other party's car", the property damage was settled.  If anyone was injured in the other car, their insurance would be communicating with your husband  and his  insurance company.  Also, the debt collector cannot suspend your husband's license.  The DMV could suspend a license, but there is no reason for that since your husband had insurance.
Therefore,  I would ignore it.  If there is a personal injury claim that is not settled with your husband's insurance carrier and he is served with a summons and complaint (the complaint is the lawsuit), refer the matter to your insurance carrier which will provide your husband with an attorney at no cost.


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