In numerous states, particularly those with no-fault insurance laws, staged car accidents are on the rise. Criminals stage these to get money from insurance companies. Some of these have some innocent victims when other do not. Insurance fraud is a serious issue that raises rates for everybody — and some states are aiming to battle the bulge.
How it works to stage a car accident
An accident that insurance fraudsters set up to make money is called a staged automobile accident. There are numerous types of schemes. Some include cars that are filled with many people that have a minor accident. Injuries are claimed by all of the individuals then. Others are played with innocent drivers. No matter what the scheme, a staged vehicle accident is generally difficult to stay away from and even more difficult to prove.
Cost of staged car accidents
It can cost a lot for staged automobile accidents. Passengers can claim hundreds of thousands of dollars worth of injuries. Damages to automobile can add thousands more. These staged car accidents also increase the cost of insurance for the driver found at-fault. In insurance states, insurance costs spike. This is just the financial cost — there is also a very real danger of personal injury and vehicular-related death.
The rise in staged accidents
The number of staged accidents is hard to determine. Because numerous of these accidents look “normal,” pegging them as fraud is tough. The Coalition Against Insurance Fraud reports that thus far this year, Florida has seen over 3,000 staged accidents, New York has had 1,680 and California has seen 1,619. For staged accidents, Illinois and Texas round out the top five.
See commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
Find more info here:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
