He tried to get it replaced via his insurance.
Why did he try to get it replaced by insurance?
It's cheaper to get it replaced that way.
If it shouldn't be replaced by insurance, he shouldn't have tried. That is fraud and he could go to jail.
It's not like he got caught or anything, its fine.
That is not fine. He may not be caught now, but he could get caught later. It is better to not break the law at all in these situations.