Yep, better to not give the inspector something to find. If they find that you've made an attempt to disable the vehicle, that will certainly make you look more guilty. Additionally, since they are claiming you hit their car, the inspector should be able to look at dents/scuffs on their car and compare them against areas on your car for signs they match up or have paint chips of the same color. If they're claiming that huge dent on your rear fender is where you hit their car, the rust formation where the paint chipped away should prove that the dent's been there a long time.
Help the inspector put more trust in you than your neighbor, don't risk making them think you're trying to perform insurance fraud or cover up your guilt.
-Rod