It sounds like the car got hit again, possibly by someone who had no insurance, and they're trying to squeeze the repair costs out of you instead.

I was in an accident a number of years ago in which a car ran a stop sign and hit the van in front of me. I hit the van lightly (moderate damage to my own car, minor to the van). The first car destroyed the front end of the van but the man driving it was uninsured so the drivers of the van tried to sue me for the value of their vehicle. I told my insurance agent I'd be glad to pay for damage to the back bumper but as I did not cause the accident and had nothing to do with the damage to the front of the van (which had already occurred when I bumped them), I wasn't going to go down for totalling the van without a fight. They finally gave up the suit but it was a pain in the ass.