Sources close to the situation tell us ... Kim's fender bender case from a car accident in 2014 has been settled through her insurance -- she didn't have to fork over any dough.

As we reported ... Rafael Linares claimed he suffered multiple injuries in the accident, incurred expenses for doctors and his ride was damaged. Kim's side claimed damage was minimal, the guy was fine and her G-Wagon was slightly scuffed.

Despite the disagreements then ... it looks like they worked it out.