Auto Insurance Claims: both cars backing, splitting hairs, hard feelings

Question
While backing out of my parents driveway I ran into the rear end of my brother-in-laws car.  I was very confused how I did this since I had looked both ways and saw nothing in the street.  We both jumped out of our cars and while my car had a very small scratch his rear bumper had a lot of damage.  We did not file a police report because we were both on the way to the funeral home for my mother and said we would figure it out later.  I assumed it was my fault because I did not see him and told him I would take care of it.  Later I found out that he had pulled into the neighbors driveway across the street and was backing up at the same time I was.  My questions are: 1) Who is at fault here? 2) Since a police report was not filed can a clain still be processed through insurance?  Since it involves a family member I would like there to be as little hard feelings as possible.  Thank You

Answer
For something like this, you would not need a police report to involve insurance.  

If someone saw him actually moving at the same time that you were, then I'd say this is 50/50 with each party paying for their own damages.  It's possible that you were both backing, but he may have stopped backing right before you hit him.  You might want to get the witness to expand on that a little.  If he had stopped first, then you should go ahead and tell your insurance company that and let them just pay for all damages.

With it being family, you're right; it's a hard call.  Something like this could turn into a squabble that could last a lifetime.  Therefore, if it gets down to splitting hairs on who stopped first, you might just want to concede.  

Oh, given the description of the damage, it does sound like he may have stopped right before impact.  Otherwise, his damage may have been further foward into the 1/4 panel or door.

Good luck and I'd appreciate your feedback.