I was recently charged with failure to report an accident in an underground parking lot. Apparently there is video evidence which shows I clipped a car as I was parking. The video is not great, but the colour of the paint on the damaged car is the same colour as my car (green). The strange thing is I do not think I hit a car and there is no sign of damage at all to my car.

How can I fail to report an accident I didn't even know occured?

I am told that the damage to the other car is $3200. Am I liable for that amount? Will my insurance pay if I am found guilty, and so will I have to pay my deductible and my rates go up?

Thanks,

Obviously you can't report an accident you weren't aware of, and that there is your defence. Whether it's believed or not will depend on the fact of the case and how they come out at trial. The rest of you question about liability and payment has to do with your particular insurance policy and you'll have to sort it out with them.