In many states, particularly those with no-fault insurance laws, staged automobile accidents are on the rise. Criminals stage these to get money from insurance companies. Some are with large groups and others with victims. Insurance fraud could be a severe issue that raises rates for everybody — and some states are aiming to battle the bulge.
How staged vehicle accidents work
A vehicle accident that is staged is when an accident is cause to make money. There are multiple types of staged accident schemes. Some include cars that have been filled with lots of people that have a minor accident. All of the passengers then claim injuries. Others include innocent drivers that look like they caused the accident. No matter what the scheme, a staged automobile accident is generally difficult to avoid and even more difficult to prove.
Cost that comes with staged car accidents
The cost of staged vehicular accidents can easily get very high. In injuries, passengers can claim many money. Thousands more can be added with damage to vehicles. These staged car accidents also increase the cost of insurance for the driver found at-fault. In no-fault insurance states, the cost of insurance in general can spike. This is just the financial cost — there is also a danger of personal injury and increased vehicular-related death.
Staged accidents rise
It is hard to choose what the number of staged accidents is. Because numerous of these accidents look “normal,” pegging them as fraud is tough. As reported by 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. Illinois and Texas round out the top five for staged accidents.
See commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
Discover more about this topic here:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
