Auto Insurance Claims: What if I want to pay for the damage out of pocket and not submitt the claim?, pay out of pocket, report to insurance company

Question
I recently backed into a car parked directly behind my driveway on a narrow street.  I notified the owner and we exchanged information.  There was no damage to my car but the bumper will likely need replaced on her car.  I told her if it was going to be in $1000 range to fix i would prefer to pay her cash than submit it to my insurance as i have $1000 deductible and will see a significant hike in my premium due to the claim.  I asked her to get a couple of estimates and we would go from there but now she is pressuring me to go through insurance because "it's a hassle" for her to get multiple claims.  Am I obligated to go through insurance?  If I don't, am I obligated to pay for her rental car during the repair?
Thanks!

Answer
Hi Heather,
The $1,000 deductible that you speak of only applies to damage to your car.  The property
damage portion of your policy pays the damaged party with no deductibles having to be paid
by you.

Although many times people are able to solve the accident between themselves, If you live
in a mandatory insurance you are required to have your insurance company file proof of
insurance with the department of motor vehicles if there are any injuries or if the damage
exceeds a certain threshold as proscribed by your state law which is usually between $400 -
$750.  Even if you work out an agreeable payment with her, she could still make a report to her insurance so they can file proof of insurance on her behalf.  In doing so, her company provides all information about you.  The state will then demand that you have your company file proof of insurance for you.  Your company will then consider this as a "chargeable" accident against you and increase your rates accordingly, even if you pay the full amount of damage.

If you still desire to pay her direct, you also owe her rental car costs which she can
abuse considerably and you have no control unless you first have her secure 1 or more
estimates and agree to pay her based on the lowest estimate and agree on a set number of
days of car rental at a set dollar amount and then properly complete a release of all
claims statement and have her sign it before giving her a check.

Based on her lack of cooperation to date, I recommend that you turn this over to your
insurance company.

I hope that you find this helpful.  Your feedback by rating my response will be appreciated.

Bennie
San Francisco Bay Area