In many states, particularly those with no-fault insurance laws, staged vehicle accidents are on the rise. To get money from insurance companies, the accidents are staged. Some schemes involve innocent victims, while others consist of large groups of fraudsters. Insurance fraud could be a significant issue that raises rates for almost everybody — and states are aiming to battle the bulge.
How it works to try and stage a automobile accident
A automobile accident that is staged is when an accident is cause to make money. There are multiple types of staged accident schemes. Some consist of cars that have been filled with lots of people that have a minor accident. Injuries are claimed by all of the individuals then. Others are played with innocent drivers. No matter what the scheme happens to be, a staged automobile accident is usually 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. Damage to vehicles can add one more 15 to 30 thousand dollars per vehicle. The person who isn’t really at fault can also have their insurance costs increased. 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.
Rise in staged accidents
It is hard to choose what the number of staged accidents is. Since they look normal, it is hard to call them fraud. 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. Illinois and Texas round out the top five for staged accidents.
See commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
Citations:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm
