My firend who is insured used my car and while opening the door, bumped the door into someone else's car. The driver was apparently furious, insisting on how expensive his car was, that it was going to be costly to repair. My friend took pictures of the actual damage: a fainted scratch on the paint, something that was done to my car numerous times and I probably have done on other cars as well without knowing. The scratch was already fading away by rubbing it according to my friend.

My friend tried to find out if this could be settled without going through the insurers, the driver seemed to be trying to negotiate ridiculous amount for the damage!

I still want to believe there is fairness and reasonable justice in our systems, I believe the guy is trying to take advantage of the situation.
Now I receive a letter about the "accident" from my own insurance. I explained to them the issue, they do not want to deal with it and want to pass the file to my friend's insurance. I haven't received the claim cost from the other driver.

I believe this can mount up to unreasonable cost that will increase my friend's premium. On the other hand, the guy seems to also want unreasonable amount to "fix" his car. What would you advise me and my friend to do?