My first reaction is that there are people who are just jackasses, and insurance companies can really be just scams. After all, they are in the business to make money, and they use any excuse they can to keep from paying out. I'm so sorry your husband happened to tap the bumper of the other car. In hindsight, it probably would have been better to have called the police, since the person asked for the insurance info. That did suggest the person wasn't going to be happy with shaking hands and parting ways. But, your husband sounds like a nice, trusting guy.

You say you were ready to part with this company, anyway. At least they have done it for you. Even if an insurance company pays for an accident (any car and personal damage), then if the cost is above a certain amount, your premium will be automatically be raised by them for awhile. I found that out when I hit a car a couple of years ago.

I just heard of an insurance company that refused to pay for damage, even when the cop gave the other person the ticket for running a stop sign. The insurance company said the hit driver was "40% at fault because he should have looked before crossing the intersection." Go figure. (I hadn't heard of the company.)

I'm so sorry this event happened. At this point all I can suggest is to carefully shop around for the most decent company and see what they would actually make you pay. And, alas, not be so trusting of people.