I once witnessed an accident when my driver backed into a motorcycle outside the scotia bank. The incident was settled with a handshake and my driver walking away with the broken part that he agreed to replace. Since you are tourist, the locals correctly assumed that would not settle for a handshake and would want to go through the proper channels to report the accident on your rental car. The other driver may not have had proper insurance or couldn't afford the deductible, which is probably why the other locals told him to leave the scene when they realized you were a tourist. I'm not excusing their behavior, just offering a little insight in to their point of view. The locals do look out each other.
Fwiw, your story is exactly why we choose to hire a driver, rather than rent a car.