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Technically, if you settle the situation on the side and dont go through the insurance companies, you can do whatever you want, no laws apply as you are not performing any contractual actions. If the police are involved, you most likely, depending on your state, would have to repair the vehicle, but then its up to the ins company to follow up and make sure you fix the car.

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Q: Can the person who hit you make you fix your car or can you keep the cash?
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