There is a potential for prosecution on charges of making a false official report or insurance fraud, and there can be civil consequences such as a suit for damages or cancellation of insurance if the false statements are viewed as intended to affect insurance coverage for the collision.
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Your cousin and your friend could both be prosecuted for filing a false police report, filing a false insurance claim and a slew of other things that would be determined by the facts of the accident and what followed after. I recommend they consult with a criminal defense attorney to see how they should go about correcting this situation.
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Both parties could face criminal charges resulting from this matter, and each should consult with an attorney to ensure that their interests are protected, and to plan for contingencie. If questioned about this matter by the police, both parties should invoke their right to remain silent and immediately request to speak to an attorney. Having an attorney at the earliest possible stage of a potential charge like this is criticial to a favorable outcome.
This answer provides general information and, apart from the encouragement to hire an attorney, is not intended to be relied upon as legal advice. You should always seek the help of an attorney who can provide accurate, reliable, legal advice after reviewing the specific facts of your issue.