If I were you I would report the cop to his supervisor. Since this guy seems to be so comfortable doing this to yuo -convincing you to lie for insurance and so on he has probably done it before. Also if you go through with this plan of the cops besides insurance fraud this cop will be holding what you did over your head, especially if he is trying to get in your pants. He will hold what you did about this situation over your head to prevent you from reporting him should he decide to not take no for an answer and rape you. A cop here is in jail right now for sexual assault and so on for using his position to prevent rapes from being reported by those he let go on certain charges.

My suggestion is come clean make an honest police report with another police official about the accident. you may have to pay bucks because the accident was your fault but this police officer will not be able to blackmail and cause you harm because he is inticing you to commit other crimes which insurance fraud is a crime punishable with fines and jail time depending on first time offense and so on.