My car has been vandalised by the next door neighbour this Friday, picked up on CCTV.

Would value the forums thoughts on how to proceed next.

Situation.
Terraced house with on street parking, my car parked outside of my property but overhangs to the front of the said neighbours property by default of the next car in the road overhanging in the same way to my property.

Whilst I'm out, said neighbour returns from what looks like a night out in the taxi, and later in the night proceeds to get their car from their allocated bay behind the property, to then pull up next to my car and pass it twice with a key supposedly on the way to and from their property going and returning with nothing but keys. They then proceed to drive off.

I discover the damage in the morning on Saturday, and pick up the above detail from my CCTV.

How would you deal with the situation, I think my options are as below?

- Report to police and recover damages through court.
- Report to police and offer the option to settle damages with neighbour, to then drop charges.
- Report to police, and recover damages through insurance as a hit and run claim since he was in charge of his car, despite doing the damage in person.

I'm not going to post content of damages or evidence at this stage, but for context it is two deep scratches on rear quarter panel including light. You could clearly see the dusting of the scratches in the morning and hear the scratching sound on CCTV.