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.