In numerous states, mostly those with no-fault insurance laws, staged car 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 is a serious issue that raises rates for every person — and some states are aiming to battle the bulge.
How vehicle accidents that are staged work
A staged car accident is an accident that insurance fraudsters set up to make money. There are multiple types of staged accident schemes. Some contain two cars that have been filled with people that have a minor accident. Injuries are claimed by all of the then. Others set up innocent drivers for an accident that they could not keep away from, and then must pay for. No matter what the scheme happens to be, a staged vehicle accident is generally difficult to stay away from and even more difficult to prove.
Staged car accidents cost
The cost of staged vehicular accidents can easily get very high. Passengers can claim a lot of money in 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.
Staged accidents rise
It is hard to determine what the number of staged accidents is. 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. Illinois and Texas are within the top five for staged accidents.
Commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
Discover more about this topic here:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
