Auto Insurance Claims: payment question, car owner, insurance claim

Question
one of my friends scratched a car and was accused of committing a hate crime/ trespassing.  the owner agreed to letting her pay for the scratch to get fixed and leave it at that.  She agreed to pay the money to get it fixed as long as she received a final bill.  The car owner let his insurance cover it, so he pocketed all her money. is this legal?

Answer
It is illegal to make a profit on an insurance claim. The car owner's insurance company may come to your friend in their effort to subrogate the claim and request that she reimburse them for the cost of the claim. Your friend should inform them of her payment and produce a receipt or cancelled check as proof. Whether or not the car owner committed a crime depends on the car owner's actions at this point, such as to contact his insurer to submit the funds.