That seems rather surprising they would drop you after one accident. I mean - if they were mad that you lied where you drove - how did they know that it wasn't a one time thing like visiting a friend? I would find it rather silly if you had to call your insurance company ahead and ask for their permission to drive outside of the area you said you would be driving in.
I imagine the troublesome bit was when the dad lied about where the kid lived. Residency can usually be proven or disproven, and where you live can affect your rates significantly.
