Unless I'm missing something, I don't think you understand how an insurance claim works. You don't owe $500, the insurance company owes you anything over $500 up to the market value of the vehicle. I suggest you get an estimate from a reputable repair shop to determine the repair total. If you choose, you can elect to be "cashed out" which means you receive a check for the difference between your deductible and the estimate total. It looks like you'll need a new bumper cover and paint job if you want it to look new again. Unless you have some serious body and paint skills it will never look new if you try it yourself.
Anyways, this should be considered a non-fault loss and there are no negative ramifications for pursuing a claim. If you're strapped for cash you could have the claim cashed out and do a search for a salvage bumper with your paint code and may break even or better. I don't mean to lecture, I'm in the insurance business and I'd hate to see you lose out.

 

Went to the mountains to escape the 100 degree weather Friday. Overall, it was great. Went to Grand Father mountain, 70 degrees. Art fest in Banner Elk Saturday. But... asphalt gravel tracked and stuck as tar stains in the custom embroidered HHR carpet mats. Darn. Rotors started to pulsate. Just had them cut less than 3000 miles ago. Darn. Backed into a Lexus and scuffed both bumpers. Dang. I couldn't find the owner of the Lexus. Called the police, made the report. My insurance company notified today to take care of. At least I didn't hit and run.

$800 damage if I repair my HHR. Addressed with scratch remover and removed most damage. Paintless dent remover should take out quarter size dent. No broken paint. Should be good to go. I got my driver's license in 1974 ( I was 15 in Louisiana and learned to drive in mom's '72 Cutlass Supreme) and this is my first at fault bump up. Knock on wood, but still a bummer.

 

I had paintless dent repair done today. $180. It is amazing what these guys can do. Glad I didn't have a traditional repair that would have required filler and painting the whole panel. I feel better now.

 

My deductible is 250. I would need a new rear hatch anyways. Its not worth it. When I get the money, I'll do it.