In many states, particularly those with no-fault insurance laws, staged vehicle accidents are on the rise. Criminals stage these to get money from insurance companies. Some schemes involve innocent victims, when others contain large groups of fraudsters. Insurance fraud could be a serious issue that raises rates for almost everyone — and states are aiming to battle the bulge.
How staged vehicle accidents work
A staged vehicle accident is an accident that insurance fraudsters set up to make money. There are numerous types of schemes. Some consist of two or three cars that have been filled with individuals that have a minor accident. Injuries are claimed by all of the people then. Others set up innocent drivers for an accident that they could not avoid, and then must pay for. A staged automobile accident is typically difficult to stay away from and even more difficult to prove.
Cost that comes with staged car accidents
It can cost a lot for staged accidents. In injuries, passengers can claim many money. Damages to vehicle can add thousands more. These staged car accidents also increase the cost of insurance for the driver found at-fault. Insurance costs can spike in any accident. This is just the financial cost — there is also a very real danger of personal injury and increased vehicular-related death.
Increasing in the staged accidents
The number of staged accidents could be very difficult to pin down. Since they look normal, it is hard to call them fraud. 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.
Commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
More details available at these sites:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
