What to do in the case of an accident (discussion)

Incident:

Cyclist, with third party insurance through LCC, collides with stationary car at lights. Cyclist is 100% at fault, no question.

Car is damaged to the tune of approximately £500.

Driver gets quote for repairs.

Now what?

• Does the driver pay (out of his own pocket) for his repairs first, and then claim back off the cyclists' insurance company?
  
  

or

• Does the driver contact his insurance company, they pay for the repairs, and then they claim back off the cyclists insurance company?
  
  

or

• Does the cyclist pay for the damages (out of his own pocket), and then claim it back from his insurance company?
  
  

There was a small bit of info about this at #217 from Oliver but not enough info about the process about what happens next.