All you need to write is
date: dd mm yy:
their ref aaaaaaaaaaa
Dear Sirs
re whatever Direct Line have headed their letter
I am in receipt of your letter dated DD MM YY concerning the above matter.
As there was no negligence on my part I am advised that I have no liability to you or your insured, and so will not be paying your demand.
I do not expect to hear from you further about this matter.
Yours faithfully
Bettie
date: dd mm yy:
their ref aaaaaaaaaaa
Dear Sirs
re whatever Direct Line have headed their letter
I am in receipt of your letter dated DD MM YY concerning the above matter.
As there was no negligence on my part I am advised that I have no liability to you or your insured, and so will not be paying your demand.
I do not expect to hear from you further about this matter.
Yours faithfully
Bettie
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