Q: What's the penalty for exaggerating injuries caused by a car accident for more insurance money?
A: If you "exaggerate", deliberately, that's lying. If you do it under oath at a deposition or at trial, it is perjury and is a crime. You could have problems with perjury or insurance fraud charges. But this is unlikely. The more direct result will be that you will get caught in a contradiction, or your doctors will figure out you are malingering, or you will otherwise get "caught" and your case will be severely damaged. Honesty is always the best policy.
A: The penalty can be prosecution for insurance fraud. The crime could be defined in various ways by different statutes, but fundamentally involves acts (or omissions of acts) carried out deliberately or knowingly on the part of a defendant with the intent to defraud an insurance carrier.
A:
No penalty unless you clearly lie about a fact. However how bad a person feels isn't a fact but an opinion. Can you lie about an opinion that doesn't have facts? Well, some would say certain panels of talking heads all do that.
If the issue is you're being sued, you think the other person is fibbing, let your insurance company & their lawyer take care of it. They are looking for reasons not to pay and are very good at not paying.
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