How do I handle an accident where the person I hit is claiming more damage than what was actually caused?

I was at a stop light when I tapped the person in front of me. We both pulled over to the side of the road to exchange information. There wasn't much damage to either vehicle except for 2 small scratches on the other car's bumper. Now the guy I hit is trying to claim that his tail light was also broken. What should I do?

If you are filing a claim with your insurance company then the simplest solution is to provide them with pictures of the damage from the accident scene. They will investigate the accident and pay for any damage for which you are liable. Whether or not they cover the damaged tail light will not make any difference in the end result of the claim. If you are paying for the damage out of pocket then it is up to you and the other party to come to an agreement on the amount of the repair. If you took pictures at the scene of the accident then you should be able to prove fairly easily that you did not cause any additional damage. Filing a claim through your insurance company, however, will also completely remove you from having to deal with the other party altogether.