It's stupid because you aren't going to be cited for hitting a squirrel.
I mean, that was pretty easy, wasn't it?
Yes, I agree that it sucks the other dude got the cops and insurance involved, especially it it wasn't a real damage situation. It pretty much screwed both parties. I've been lucky in the past, where I was unable to slow down, due to rain an traffic, to let someone merge (spacing), so I sped up a little bit, then the old lady in front of me stopped her car, for some reason, on the expressway. Obviously, this was still all my fault. Damaged my radiator but frame was OK. But she got out, no problem to her car, and drove away....that could have been way worse for me, and so it has never appeared on my record (now ~15 years ago).
Dude in a parking lot drove into my car a few years ago, trying to make a left turn into notoriously-narrow MD shopping mall lots with his giant and unnecessarily stupid pickup truck, while I was already in position to make my right turn exit. He just kept turning and wouldn't stop. ....I got some of his paint, a dent that I popped out with my hand, and a cracked tail light casing. But we didn't bother with insurance. Honestly, that's been more my experience, but life shits on you some time and you end up with an idiot that really doesn't have enough experience to understand that "the right thing" is often the wrong thing.