Not all car accidents are "accidents." In fact, more and more people are using fraudulent car accidents to take money from victims every day. Staged accidents are a very real concern- and if you are involved in one of these situations you and your insurer are being taken advantage of. The Insurance Information Institute claims that staged accidents cost policyholders and insurers billions of dollars every year. They are increasingly common, especially during recessions. Scam accidents are a sort of insurance fraud, where a driver purposefully calculates a car accident so that it will look like you are at fault. Staged accidents are illegal, and it is important to fight against these unfair claims. The vice president at the Insurance Information Institute says that staged accident initiators are thieves, and target innocent drivers so that they can defraud insurance companies. If you have been involved in an accident that just seemed odd, then it may be that the other driver premeditated the crash. These accidents occur most often in urban areas, where there are a larger number of vehicles and enough activity to distract witnesses from noticing the purposeful crash.
The National Insurance Crime Bureau notes that most staged accidents occur in wealthier areas where it is perceived that drivers have better coverage. Criminals tend to locate new vehicles because they are normally better insured. Also, these scammers will look for rental or commercial vehicles, since these tend to have high coverage as well. Young women and senior citizens who are driving alone tend to be the primary targets because both of these groups are vulnerable and are not normally confrontational at accidents. States with "no-fault" auto insurance policies see more staged accidents than states that do not offer this policy. Twelve of the United States has these no-fault laws. Florida is one of these twelve states, and happens to be the state with the most questionable auto accident claims per year.
The National Insurance Crime Bureau released a document outlining the common staged auto accidents so that drivers can be more aware of these situations. A "swoop and squat" usually involves three cars. Two of these cars are driven by the criminals. One criminal pulls in front of the victim's vehicle, and then the other pulls ahead and abruptly cuts his partner off. When the vehicles break, it does not give enough of a reaction time for the victim. The first driver who cut the other off speeds away, so that he cannot be located and held liable for the accident. Therefore, the victim is obligated to pay vehicle damage and personal injury claims of the person in the car he or she rear-ended.
Another typical staged accident involves a side swipe. Here, the criminal positions his vehicle in an outer line right before cars enter an intersection. As soon as the victim's vehicle drifts into that lane during an intersection the criminal side-swipes it. This way he can press all liability onto the victim, saying that he or she was drifting and driving "recklessly." Also, criminals will sometimes use a "panic stop." Here, the scammer will usually drive an older vehicle filled with people. He will pull in front of the victim, and tell passengers to watch for a time when the driver is distracted by something, such as changing the radio or answering a phone call. Just as the driver averts his or her eyes from the road, the driver will slam on his brakes. Because he or she was distracted, the driver is responsible for the "fender bender" and will need to pay for the damages.
A particularly devious scheme is called a "drive down." The victim will signal that he or she needs to change lanes in heavy traffic, and the criminal will motion for him or her to do so. Once they have been motioned in, the victim will proceed to merge, and the scammer will speed up so that the cars collide. When questioned, the scammer denies that he ever motioned the driver into his lane. If there are no observers to testify against this claim, the victim will end up with all liability for the accident. When you are involved in an accident, look for "runners" who suddenly appear on the scene of the accident and point you to attorneys and doctors. These people may be partners with a criminal and aim to point you to other people in on their scheme.
If a physician insists that you file a personal injury claim after an accident even though you are not hurt, then that person may be in on a fraudulent accident. If a tow truck arrives at your accident scene without being contacted, you have reason to be suspicious- this may be another person in on a scam accident. Whenever you are involved in a questionable accident, write down the names and addressed of all drivers and passengers that are involved in the collision. Record all license plate numbers, driver's license numbers, insurance I.D.'s, and car make and models. Get the names and addresses of the witnesses present, and record the names and badge numbers of the police officers at the scene of the accident.
The Insurance Information Institute suggests that if you suspect that you have been scammed by a staged accident you call the police or highway patrol. Let them know that you suspect a scam, and get a police report even if there is not a lot of damage to either vehicle. Sometimes criminals will further damage their vehicles after the accident in order to get more money from you. If you have the police report, you will be able to prove what damages were added later on. As well, contact your insurance company as soon as possible after the accident, regardless of who is liable. Let them know that you suspect fraud and give details on the accident so that they are aware of the situation. The National Insurance Crime Bureau also has a hotline set up to report accident fraud. If you locate a wanted criminal, you may even be eligible for a reward.