The accident happened on August 05.

I was on my way out of an alley. The street that I turned to is small steet 2 lanes with side parking on both sides.

It was a very busy street and school area.

I decided to turn when I saw the car at my left side stop for parking and the car at my right stopped and let me turn in front of him ( I trying to turn left ).

I was all the way trough first lane and half way turn. He drive passed the car that stopped for parking and hit at the left side of my car.

I never have accident before so I didn't call police to make a report.

We exchanged insurance info.

His insurance called me and send a billed to collect money from me.

I asked someone and they told me that a car that turned from alley always the fault.

What should I do? He hit me and I have to pay for him?

My insurance is liability so I have to pay to fix my own car.

I have no idea what to do with all this problem.

This happened in 2005 (you said "August 05")? Or do you mean it just happened on 5 August, 2010? If this occurred just last month you should contact your insurance company and give them the details - they will work with the other person's insurance company to pay them off. If you don't have collission insrance they won't help repair your car, but at least they'll cover the other person's.

As for whose fault it is - as you described it, I think its your fault. You must yield to cross-traffic since they have the right of way, and you didn't. However if the car that hit you was speeding, or traveling in the wrong lane, you may have a case. Be sure to give your insurance company all the details so they can ascertain fault.

Also, if your vision AND the other driver's vision was blocked by the car parking, you may have a case for shared liability. A police report is helpful but not 100% necessary. Talk to your insurance carrier, tell them what happened and they will try to get something from the other carrier.