How much damage was done to his car? Is the 1500$ total or just to your car? What is your deductable?
If the damage to both cars totals 1500$, just pay it out of your own pocket, otherwise it will cripple your insurance rates for years, and you'll end up paying more in the long run.
Also, if there is a dispute, I'd go to the cops - fill out your side of the story in the police report, and see what happens. Although if he can produce witnesses (they sound of the fictional variety) - you might be SOL in that respect.
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