This is not an issue of "accepting" fault or not. Your friend has insurance, so the insurance company will resolve this. If the injuries are minor, the party is unlikely to get a lot of money.
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Obviously, the only option for your friend is to tell the truth to their insurer.
In CA, when you are involved in an auto accident, you must report the incident to the DMV if anyone was injured (no matter how minor).
Also, it is important for an insured to inform their insurance company of any accidents, because an insured has a contractual obligation to do so, and too often some party to the accident (no matter how minor) subsequently experiences or claims to have experienced some accident-related injury.
An insured has a contractual duty to cooperate with their insurer. Here, the insurer should defend your friend (their insured). But, cooperating with the insurer is key.
Because the property damage is so minor, and depending on how long after the accident the other driver claims to have sustained injury, the damages for this claim would likely be very minor and insurance should cover this incident.
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Your friend's insurance company will handle it and likely defend the case if they believe the medical bills are not reasonable.
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You say that your friend was involved in an accident, then, denied to his insurance company that he was not involved.
Your friend needs to call his own insurance company and be truthful. They have a duty to defend him and to indemnify him (to pay for his damages). If he is not truthful with his insurance company, it may be grounds to have coverage denied. Certainly, this untruthfulness will give the "injured" party ammunition for a lawsuit, as it will be used to impeach him.
Leave it up to the insurance company to decide whether or not the other person was injured, that is what they are trained and paid to do.
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