Absolutlely. it's called insurance fraud and it happens frequently. That's a big reason to take a lot of pictures at the scene of the accident and to even invest in a dash cam.

It happened to me last year. Some guy side-swiped my car while aggressively trying to cut around me in line at a toll booth. You know those people - the ones who need to be in front because being behind someone in traffic is a personal insult. There was zero damage to either of our cars minus my side-view mirror being pushed forward that i was able to fix myself. I took lots of pictures, but his pickup truck was covered in dirt. We exchanged information just because.

Went home and a few days later, he told me that he brought his truck into a shop and wanted $2,000 for repairs or he would contact my insurance company. This guy was from a working class neighborhood who almost definitely had a buddy mechanic that would say anything to help his friend. I denied the damage and sure enough, he filed a claim against me.

I went back and forth and explicitly told my insurance company that he was a fraudster. They saw the photos and agreed with me that it looked like it was his fault and that there wasn't any damage. When it was time for the final decision, the person probably spent less than 10 seconds reviewing the case before deciding that I was 50% at fault. I learned later that this is common for any accident in which both vehicles have someone in it. It's easier for the insurance to pay out than it is to spend money to try to fight it.

I went out and bought a dashcam the next week.