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To your original question - I would say insurance is your only reasonable option if you want to (or have to) put things back to how they were pre-accident
Now to go down the rabbit hole - given this is your underage Nephew, it seems you are trying to be a great Uncle (commendable) - however given the fact that this is your sister or brothers kid - if it were me I'd be asking him/her how they are going to fix the mess their kid created.
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