Auto insurance fraud

First, I assume that the company who wrote the policy didn't make the insurance effective until after the policy was processed, usually after mid-night of the day you applied. [You should have your full policy by now so you can check-out these details..] Even if the coverage became active immediately, the citiation from local law enforcement should have a date and time on it and that will show that your claim was filed after coverage came into effect. In short, the insurance company should deny your claim.

If you didn't know that your friend had filed for insurance until after the accident when you filed your claim a few days later, but reasonably thought that the policy was in effect before the accident happened and filed a 'good faith' claim based on that understanding, you may want to consider your options, but the insurance company should still deny your claim.

But if you knew he filed for this policy after the accident AND you filed a claim knowing this and perhaps fudging a few details, you should withdraw your claim ASAP. Let's just say this looks pretty bad.....

No matter what, I'd take my policy documentation to a good attorney and run the facts by the attorney. It's a few dollars spent so that you can rest peacefully at night.

Withdraw the claim immediately. Don't make it worse by telling another story about why you are withdrawing the claim. Simply withdraw the claim without providing a reason.

The fraud is not in buying the policy. The fraud is telling the insurance company that the accident happened after you bought the policy. You should withdraw your claim as fast as possible, but keep in mind that you broke the law as soon as you filed the claim. However if you withdraw the claim probably nothing will happen to you.