Staged car accidents – fraud schemes exploiting insurance systems – are becoming more common on American roads.
According to the Insurance Information Institute, these incidents are increasing in California, New York, and Florida.
Mark Friedlander said, “unscrupulous actors” are increasingly using busy roads to create accidents to collect insurance payouts. This is particularly true in states that have high traffic.
These auto fraud scams have been around for many years. Friedlander said, “We are seeing an increase in several areas.”
He said, “You’ll see them on interstates in highly populated areas of the country that are highly congested.”
According to the Institute’s research, New York saw an increase of 14% in staged accidents on a yearly basis. New Jersey experienced a 58% spike. This is one of the highest rates recorded in the U.S.
California was ranked first, with 5,366 staged accidents. New York ranked second with 1,729, followed by Florida with 1,110.
Friedlander said that the perpetrators’ ability to avoid prosecution was also a contributing factor.
“While states are trying to crack down on these scams, many fraudsters that operate in these states don’t get caught,” he said. “He said that the problem is getting worse as fraudsters “continue to be more brazen and bold” when it comes to causing stage accidents.
Friedlander stated that dash camera footage shows the “brazenness” and “boldness” of the unscrupulous actors.
Dashcam video from the victim’s vehicle shows a silver Honda cutting her off before stopping and reversing into her.
A spokesperson for the New York City Police Department said that detectives have interviewed the victim, and the investigation continues by the Fraudulent Collision Investigation Squad of the NYPD Criminal Enterprise Investigation Unit.
Friedlander said that this scenario is rarer. Usually, the victim is sandwiched in between two cars that are involved. A car has hit the victim from behind after slamming on its brakes.
According to him, in some cases, criminals are working “in collaboration” not only with unscrupulous doctors and injury clinics but also with lawyers who bring lawsuits on behalf of the drivers or victims.
Friedlander said that even though these fraudulent schemes cost insurance companies around $20 billion per year, drivers still have to “cover the losses” incurred by these schemes. “
Accordingly, he said that staged accidents can increase auto insurance premiums by $100 to $300 for each U.S. driver.
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