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Report it.
I was in a similar situation in which I agreed to let the person who hit my car in a parking lot pay out of pocket and not report it. I thought I was being nice and accommodating.
We exchanged numbers/info and it took forever to get the $700 dollars from her. I had to threaten her with court numerous times until she finally paid up after like 6 months. Apparently she didn't have insurance either.
Never again.
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