Auto Insurance Claims: Friends Stole care, practical joke, lienholder

Question
So the other night my car was stolen as I was walking to it. It was found later that night crashed up. I filed a police report and a claim with my insurance company. Days later I found out that I knew the guys that stole it and the whole thing was a horrible practical joke that had gone horribly wrong (they didn't mean to crash it). They were friends of friends. Anyway, I tried withdrawing the claim but because there is a lien on my car the insurance company (Nationwide) says that they cannot withdraw the claim. I would really rather not deal with them and pay out of pocket for expenses. Also, I refuse to give out the names of the guys that took my car since they are already in some legal trouble. I am being hassled by my insurance company right now because they want more information on the incident. I told them that I know who took it, I don't want to press charges, I want to keep the police out of it, and I will not give out their names. That being said, I want to keep them out of the ordeal entirely. What can I do to get the insurance company off my back? Is there any way to just withdraw the claim? I really cannot rat my friends out! Any advice would be greatly appreciated!

Answer
Hi Steve,

You said that you wanted to pay for the repairs out of pocket. So go ahead and do so. Take your car to a body shop and have it repaired and pay for it. Once the car is repaired, inform your insurance company that it has been repaired and tell them that you want to withdraw the claim. If they want to inspect the car to verify that it has been repaired you must let them. Once the car is repaired there is nothing they can do, there is no longer a need to protect the lienholder.

I hope this helps
Richard Hixenbaugh