First of all I've notice this is like on all the models but mine was never really an issue until about 2 weeks ago I got hit lightly in the rear and it seemed to really aggravate it.

 

Does anyone know ways to make it so it does not have that gap in the rear?

What gap is this?

 

You could loosen the mounting bolts and try pulling up and pushing in a little bit while re-torquing the bolts. Mine never had any noticeable gaps...? It was in fact a '97 Outback bumper on a '95 lol.

Its the rear when I get a shot I will show it

I'm not taking my camera gear out in the middle of here lol... funny thing it always seems to be a a wagon issue I've never seen it on a sedan.

 

Almost all the used wagons had maybe a 3/4 gap with a little up and down play on the rear bumper.

 

So when the guy hit me it must of pushed in and down so now it's a larger but now it's not able to move up and down.. it's just annoying to look at now that I know it's around.

 

Here are some pictures I've found close to what I'm talking about the gap really shows where the side marker is for the turn signal, it's where the body panel meets the bumper.

 

 

flush:

 

http://upload.wikimedia.org/wikipedia/commons/2/2d/1996-1998_Subaru_Outback_station_wagon_01.jpg

 

Gap:

 

http://usa-usedcars.com/upload/4000/max-20120211040619369.jpg

Can be those 3 1/2 (or 5mph) bumpers have been parking lot tested. I never thought about it because it is not a big deal IMHO.

 

That said

 

Hope you got the guys insurance info as there is a whole bunch of structure under there for the bumper that could be damaged and you never know it.