I am an insurance agent, and you are NOT a dick. Absolutely 100% go through the insurance so you're guaranteed a reputable body shop fixing your car with a warranty on all parts and labour, and do not talk to this kid again. It's not your problem- and he should be ashamed of asking you to not follow the proper procedure. Plus, you want the accident reported that you are not at fault in case his insurance company doesn't pay and yours has to try to subrogate. Don't even think about not going through insurance!
Good luck with everything!