car accident - insurance - settled without insurance....BUT

Basically my huband went into the back of a chap at a junction. The guy was a work colleague, they pulled over and there was no visible damage and no harm done so both parties went away ok.

The next day my husband checked with him all was ok and he said it wasnt, the boot wont open. So my husband asked him to get a quote for it, depending on what that was would depend on whether we used insurance or not as we didnt want to use it for a Â?200 job when our excess is Â?250!

The garage said it would be a write off as its an old beat up L Reg cavalier and the job would cost more than the cars worth. The guy said he didnt want this as he couldnt get a new car for the value of it - he wanted it fixed, and the quotes about Â?6-800.

We have spoke about this and said ok and he said he would rather us settle outside insurance as they would write it off.

No problem, well actually we are skint so big problem but we pulled the mortgage to interest only...

All sorted...but now he said he is going to the doctors as he thinks he has whiplash...he says he has a stiff neck, cant concentrate, struggling to work (he is an office worker) and so wants the doctor to prescribe him things...and he hinted about compensation.

My Q is, after ASKING us to settle outside of our insurance, can he now ask us to go through our insurance for compensatory benefits. We lose out major style then as we are Â?750 out of pocket for the workdone to the car plus the premiums, whereas before it would just be the future affect on the premiums had we gone straight through the insurance?

Im at a loss really as we arent wealthy people, the premiums will almost double after a claim, if not more, but it feels contrived. He has not mentioned anything before and so far his two passengers have not said they have a problem, theyre also colleagues, and my husband has aksed them... Is there anything we can do? It feels like he wants more and is shafting us, wouldnt have minded if he was ok to use insurance for the repairs but it just feels like he has gone away and decided he wants more, maybe done a little research and come back. When my husband asked if he was taking the mickey he said he wasnt and was happy to have not used the insurance for the repair but....now with his injury....

Help!