Thank you for your response.
First, tell her that she may no longer contact you and that if she further contacts you or threatens you, you will file charges against her for criminal harassment
and seek a restraining order. If you feel its gone to far already, then you should go ahead and contact the police, tell them the situation (stressing the fact that she has threatened to come to your house and has threatened your parents), and ask for a restraining order.
Second, she has no legal basis to threaten your drivers license, so you should not be concerned about that.
Finally, you need to contact your insurance company's claims adjuster and tell them exactly what is going on and ask them to deny the claim because you are going to contest that it was your fault. They may insist on paying the claim anyway, but you can ask.
In the end, your insurance company has an independent right to settle the claim. If they do settle the claim, then she will not be able to sue you. However, you can inform the insurance company that you do not wish to settle the claim and that you believe she is lying and is not injured and on that basis wish to contest.
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