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What will happen next?
I hit a car and did minor damage to the car, what will my insurance company do to penalize me ?will I have to pay outa my pocket? or will theyy(my car insurance co.)pay and raise my rates I'm so confused.
You pay insurance for a reason. If you hit someone, they will cover their damage. Your question is "Will they increase your insurance because of this accident?"
The answer is difficult. Please see our article about that here: http://www.auto-insurance-claim-advice.com/when-not-to-file-an-auto-insurance.html
If there is an increase, it will depend on how many claims you have, your history, etc. Sometimes it worth to pay out of pocket, but that is not very common. Please see the article referenced above.
Auto Insurance Claim Advice
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