I was in a car accident the other day on the highway in MA. I was in the middle lane when the car in the right lane tried to cut into my lane. This was during rush hour traffic so I was only travelling 30-35mph and the car in the right lane was at a stop while pulling into my lane. I could not stop in time and hit her left rear bumper(taking off some paint) She called the police but the officer said because there was so little damage there was nothing he could do. There was no police report. Now she is calling me asking to pay the damage to her car which she's estimated $350 instead of going through insurance. There were no witnesses. Is this my fault? Even though she cut into my lane. I'm afraid she will lie about what happened since I rear-ended her. Should I go through insurance? I've never had an accident before. Please advise.

If they were stopped and not moving, and you hit them in the rear bumper it will be your fault.
Not sure why the police did not do a report, they were suppose to. I would have asked for one

Also if you decide to settle, you want a written agreement that this is a settlement for any and all damages from the accident.

You may also ask for any estimate to prove she had that damage