I was involved with a car accident where I turned out of a junction at the same time as another car turned on the opposite side of the road. I hadn't seen the car until the impact and it seems I am the liable party. The other car was a taxi who had just picked up two passengers - a woman and a child.

The collision was a side impact - my left wing hit the drivers side and dented the two doors on the drivers side. The driver said we didn't need to involve police and at the time. After the accident I heard the woman say that she on the phone that she was okay and not hurt - just a bit shook up.

This morning I received two very threatening letters from a solicitor saying she and the child were claiming personal injury and I had to write an admission of liability and proposals for how I was to compensate them. It does not say what the alleged injuries are. I have reported this and what the woman said on the phone to my insurer.

How can I contest her claim? To me it's an obvious lie. It was a low impact side on collision - if anyone should claim injury it's the driver and he hasn't. Should I get legal representation?