CA & Check I stopped payment on

Here's the story, my final bad mark on Experian and want to remove it:

I get insurance through a company, I pay for 3 years (renewing each year), making payments every three months.

Payment comes around again and I sent them a check without thinking. Except that while I was messing around on the Internet, I found a WAY lower quote. So I stopped payment on my check to them and thus canceled my insurance and bought it cheaper elsewhere. (it's for auto insurance)

So, the send me a letter stating I owe them $25 for not paying my insurance premium. I kindly tell them that I was under no obligation to continue paying and decided to take my business elsewhere. They sent the amount which came to like $27 to a collection agency. The collection agency said that the Insurance Company charged me because I was making payments every three months and stopped and they were basically financing my insurance for me and charging me every 3 months.

So, I decided to remove this item by paying the stupid $28 that it's accumulated to, only to find out that they will not remove it UNLESS I pay an administrative charge of $45 for removal. So now I have a debt of $28 and the COLLECTION AGENCIES fee of $45. I don't think it's fair and I don't think I should have to pay for it. I don't know if there is even a way for the CA to validate. I was going to request validation and see what happens. There isn't a signed contract that said I had to pay $25 for anything, if I canceled my policy. I was thinking of paying the whole amount, but the CA refuses to put anything in writing and I just have to take their word on it. WHY on earth would I give a CA $72+ dollars for an account that's less than $30 and why would I give a CA that money on a GOOD FAITH basis that they will do what I pay them to do. They won't, by the way accept a credit card. Which I thought about and if they didn't live up to what they said they were going to do.. I could dispute it as fraudulent.

Ok.. so I've decided to send a Settlement letter to them stating the terms and telling them that if they cash the check, they have to delete. But I'm sending it in the amount of $28. Should they cash it, I will have verified proof they received it (I'm going to send it FedEx, Cert. Mail, Regular Mail and Fax and possibly hand deliver a copy to them (total cost is less than $20, unless I drive up 120 miles to deliver a copy). Do you guys think I should just pay it and be done or request validation before I goto all this trouble?