Sometimes insurance companies try to collect a “civil debt” in relation to losses they say your offending caused (for example the value of items taken in a burglary). If you receive a letter from an insurance company, you have a few options:
Ignore the letter. They might send more letters and eventually try to use debt collectors.
If you agree that you should pay something, you could write and negotiate a lower amount that you can pay (or that you think is more accurate).
If you can’t pay anything, you can write and tell them that. They might still choose to try to take debt collection action.