Auto Insurance Claims: Being Overcharged for Minor Accident, minor accident, two choices

Question
I recently hit someone's car in my driveway (which, by the way was parked illegally), and caused minor damage to the rear tail light of her '99 Saturn.  I told her to provide me with an estimate of the damages and I would take care of it.  I felt that the estimate provided was too much and offered to have it fixed at a shop that belongs to a family friend, but the car owner refused.  I went on to tell her that I would agree to have the car fixed at the place she chose (the dealership), however, I would be paying by credit.  She refused and demanded I pay her in cash...if not, she would report the incident to my insurance company.  I don't believe that it will cost what she says, and that she wants to pocket the extra money.  Am I obligated to pay her cash, or does she have to accept the payment type I am offering, which is to pay the dealership directly by credit card?

Answer
Hi Nikola-

You really only have two choices.  Work something out with her or turn it in to your insurance and let them pay it.  She is not required to accept any offer you make and she knows that it will cost you more over the long run if it hits your record.  

If the damage is under $750 in California it may not count as a chargeble accident.  If that's the case go ahead and turn it in.  

If not and if she won't be reasonable then you have no choice than to turn it in.  I would try to find some middle ground that she might agree to.  

Sheldon Maughan
Sacramento, Ca