I get the impression it's a hit and run, as said that's a poilce matter but anyone's guess how interested they will be, they should manage a crime number though for you/your insurer.
Assuming that £500 is from a workshops featuring managers receptionists carpets and coffee, you might be able to get a better price from a one man and his dog bodyshop, if we assume the other driver isn't found then i would only inform you insurer for information purposes and not claim, if the other driver is found and there is enough evidence to prove it was he and he drove off then in theory (assuming you are covered for legal ex's) your insurer should be able to pursue him, whether that works out in your favour in the end is not guaranteed.
Your insurance is probably going to go up regardless now, so you might as well try your best to make the other party's life as miserable as possible too.
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