Kirsty Williams, 25, falsely reported her Peugeot 108 as stolen after Ryan Lowe, 23, ploughed it into bushes while on the run.
Insurers initially paid out to a finance company which leased the car to Williams - but the pair were found out after forensic examination revealed Lowe's blood inside the car.
Officers searching his home later found a haul of cocaine, MDMA, ketamine and cannabis worth almost £3,000 as well as weighing scales, cash, and a phone linked to his narcotics racket.
At Bolton Crown Court, Williams pleaded guilty to fraud and perverting the court of justice and was sentenced to 10 months in prison, suspended for 12 months.
Lowe, from Swinton, Salford, pleaded guilty to possession with intent to supply cocaine, MDMA, cannabis, THC and ketamine and being concerned in the supply of cocaine and dangerous driving. He was sentenced to two years in prison, suspended for two years.
The court heard how, when quizzed about the car, Williams, of Heywood Street, Manchester, said: "I don't have one, something to do with Ryan. He borrowed and crashed it."
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