Two weeks ago my fiance rear ended a lady very lightly, we pulled over and the lady we hit was off the wall mad. There was no damage at all to either car, and I took photos of this.

Her insurance company called us saying there is an estimated $600 damage, and asked if we will claim it on our insurance or pay it out of pocket.

We consulted with our insurance on what to do because there was no visible damage, and we have photos that indicate this. All they said was that if we pay it out of pocket their is a chance that she could sue because we didnt claim in on insurance. Or, we can claim it on our insurance but obviously our premiums will go up.

Is their any chance of fighting this, or mediating this somehow?

Thank you so much in advance!