Earlier quoted context omitted.
On my case in France (countryside, don't know about large cities), most small damages are not even reported at all since both driver are fearing that the insurance would increase their monthly fee so people are giving cash to each other, it's quite common.
Very much the same in the UK as well. Most folk will try to avoid going through insurance. I'd rather be out of pocket for a few hundred £ than pay extra on insurance for the next few years.
It means you are currently underinsured and maybe committing fraud.