Auto Insurance Claims: collision, minor collision, doing the right thing

Question
I have been involved in an accident. I was changing lane to the left and the other car is changing lane to the right. We had a minor collision which i did not even felt. I continued driving then I have noticed the driver was signalling me to pull over. I decided to pull over in a safe place. My car's damage is on the left side rear end and the other car has got scratches in the front on the right side. The police came and the other driver told his own side of story that he was already on his lane when I tried to change lane. I was scared and intimidated in the end I told him I'll pay for the damage in his car and he was asking me to write a statement admitting that it was fault. It's my first time to have an autoaccident and not sure what to do. I was afraid that my premium will go up and I was advised to have an estimates first before contacting the insurance because it's gonna be  less than his deductibles.He had his estimates done which costs $350 and mine was worth $700. I agree to pay him but he told me I have to pay for the car rental for 3 days as well. I am not quite sure if I am doing the right thing of not telling the insurance company and shouldering the expenses. Please help me. Most of my friends told me that it is not my fault since my damages is at the rear end. I just felt like I was force to admit it was fault without any investigations.

Answer
Hi Rlin,

The fact that you admitted fault at the scene would indicate that it is your fault. If you report this to your insurance company your rates will likely go up and wouldl stay that way for 3 years. It sounds like a good idea to pay the repairs yourself. You will also owe for a rental car, however, you should only pay for basic transportation. This should cost no more that about $30.00 to $35.00 per day. Before you pay any money you should write up a release form. It should say that you are paying a total of say $500.00 for any and all claims arising from an accident that occured on what ever the date was. You should have the other person sign the form along with a witness or a notary. Then give him your payment. That way he can not come back later and claim that the repairs cost more or took longer adding to the rental car cost.

I hope this helps
Richard Hixenbaugh