TECHNICALLY this person is in the wrong, and it sounds like you're lucky enough that he feels badly and is willing to pay for damages, including to his own vehicle. Try to be reasonable with him. I doubt he'll pull that bonehead move again. I hope you realise that you're in the wrong, too (saftey-wise, although perhaps not legally speaking), to have let it happen at all. Leave yourself more space in the future, consider it a good lesson, and be glad there wasn't a third 'wrong' in the mix: someone overtaking a cyclist who wasn't leaving himself enough space. Three wrongs make for a disaster, in this scenario, not just a bumped knee and minor bike damage.