We all think that people operate the same way that we do

So Lilah was right- perhaps I should pay a little more attention to the road and a little less to my coffee (in this case Spoon's superb iced mocha (20th between 5th and 6th- I may have to stop getting them to atone). Friday morning on my way to the lab (early!) I was blinded by the sun and didn't see a red light and collided with a car service who was making a left hand turn. About a minute after the accident (both my air bags deployed) both driver jumped out of their cars and started making calls- I called my dad, who asked me if I called Liberty Mutual so then I called them. I didn't even speak to the other driver and was just trying to give all the relevant info to the person on the phone. As I am standing there, I see this elderly gentleman hop into the back seat of the very banged up car service. I was pitying him that he was so removed from reality that he didn't realize that the car wasn't going to be taking him anywhere that day. One of the witnesses then informed me that the man had gotten into the car so that he could claim that he was a passenger in the accident and that he was injured. I couldn't believe it. The previous night I had been talking to Sarah about this guy we know and she was saying that she didn't believe any of his stories as they are just too fantastic. I had told her that I didn't think to question him because I don't make up stories. I may exegerrate or emblelish and I certainly engage in the odd white lie production (especially with my parents) but I am not really a fabricator. I was telling Sarah, that his stories must ahve been true because he had produced some proof and Sarah responded that people who lie are always 4 steps ahead of you. This conversation reminded me of an encounter a few years back with another "friend" who was manipulating me and I couldn't see it. Sarah and Lilah had to point it out to me. Lilah told me that I didn't recognize it b/c while I may be manipulative at times, it is in a totally different way and mine is usually motivated by self-preservation. I didn't think that this "friend" would lie to me in the way that she did simply because I wouldn't have lied to anyone like that.
I don't mean to imply that I am some paragon of forthright interactions. I think I am paranoid about people doing certain things because I know that I would do them.