My wife pulled into a gas station and was struck in the rear passenger side door. The officer that took down the information said my wife was on the wrong side of the entry and thus placed blame on her. What he failed to indicate is that the gas pump exits extend across the right side of the driveway and anyone leaving the station would force a driver to use the left hand side of the drive way or face a head on collision etc..

Needless to say the insurance company offed 50/50 liability but I still said that she was not at fault and sent in my claim against them. They had assessed my vehicle earlier and a few months later I receive a check for a Total Loss Settlement for the value of the vehicle. Now it seems the claim against her still went to collections and they are trying to recover damages on the other drivers vehicle. I called the insurance company and the individual I talked with said she didn't know why the account shows as paid and shouldn't have been paid because, and now I have to deal with the lawyer and convince him that I should not be paying anything. What can I do in this situation?

You are not going to convince anyone, they are being paid by the other side to collect the money, so anything short of being paid is not going to make them go away.

If the other company does not agree or accept, they can sue you or attempt to collect the money.

Since the insurnce company offered a 50/50, you refused, so now you do not have their support at this point it appears.

Let me clarify, I refused all offers of liability, filed my claim against them for total loss of my vehicle based on their assessment.

I then received a check from them with "total loss settlement" printed on it with my claim number etc. Months later I now get a letter from a lawyer trying to collect the damages done to other vehicle. When I called the insurance agency the subrogator I talked with (who was very rude) stated that the accident was my fault and she did not know why we got paid, but I had to deal with their lawyer to resolve this and have the collections of my wife's credit report.

I just faxed a copy of the check to him and hopefully that will resolve this, but any other suggestions or info will be helpful "just in case"