Financial Channel

I was involved in minor accident just a small hit and scratch to both the cars.
The lady I hit came out of the car and said it was nothing and even i see there were no damages. We excahnged in information and left. No one called the cops.
But my insurance was expired 4 months ago. and i came to know about it when her insurance company called me up and said my insurance was expired.
However i renewd my insuarance the very next day.
Now her insurance company is claiming her damges to the car which was 500$
i called her insurance company and said i am willing to pay for the car damages , but she said that the shes claming for injuries too ( which is lie)
Now i dont know what to do i am fearning to being sued. Please let me know
what can happen, will i have to go to court?, is this criminal issue?, Will i be jailed? i do have insurance now. Please reply, Thanks in advance.

If you settle the vehicle damage claim, make sure you get a broad release of all claims (including any possible personal injury claim). As the police have not yet been involved it is unlikely that any charges will result from your actions.