In numerous states, mostly those with no-fault insurance laws, staged automobile accidents are on the rise. Criminals stage these to get money from insurance companies. Some schemes involve innocent victims, while others include large groups of fraudsters. Insurance fraud could be a significant issue that raises rates for almost everyone — and states are aiming to battle the bulge.
Vehicle accidents staged
A staged car accident is an accident that insurance fraudsters set up to make money. You will find quite a few schemes. Some include two or three cars that are filled with individuals that have a minor accident. All of the passengers then claim injuries. Others are played with innocent drivers. A staged vehicle accident is usually difficult to avoid and even more difficult to prove.
Cost that comes with staged car accidents
The cost of this can be very high. Passengers can claim many money in injuries. Damages to automobile can add thousands more. Insurance costs increase for the innocent victims also. In insurance states, insurance costs spike. This is just the financial cost — there is also a very real danger of personal injury and increased vehicular-related death.
Staged accidents and also the rise
The number of staged accidents is hard to determine. Because many of these accidents look “normal,” pegging them as fraud is tough. According to the Coalition Against Insurance Fraud, 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
Citations:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
