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Other party insurance said they will send bill to collection agency.

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I was involved in an auto accident and I had not known my insurance had lapsed. I contacted the other insurance company and they said they will send my bill directly to a collection agency. Can I not work out payment with them directly? I have not yet even received the amount for the damages since they said it was still in the process of being assessed. If it has to go to a collection agency will it hurt my credit score? It is not an outstanding debt where I failed to pay.


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