My question involves an auto loan or repossession in the State of: california

my car got repossessed dec 16, 2010 prior to that i already terminated the policy(nov. 30) on it and never used it. after a few days my insurance contacted me that lienholder filed a claim for damages on my car. talk to my insurance and they say that if wanted i could just tell them that damaged was before nov. 30 and they would cover it. but i dont want that knowing it would affect my records with my insurance.
my question is could i just tell my insurance deny claim what are the repercussions? and if so could include those charges with a chapter 13 bancruptcy i amalready planning on filing it.....thank you very much.....