Am I missing something?
If car in front is claiming OP will be paying higher insurance costs anyway. If OP pays all costs and doesn’t tell insurance company that surely will be more than increase in premiums. And if later further damage is found to car in front, maybe at MOT, that will come back to bite OP.
It seems that OP is worried car may be written off. Why, it is not a rare car that cannot be replaced? If OP pays for repairs he keeps car but is thousands out of pocket: if insurance write it off he gets value of car, buys another, and pays hundreds more in insurance at most.
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