Have You Been the Victim of Auto Insurance Fraud? How to Recognize the Signs of a Staged Accident
New York Press Office: (212) 346-5500; firstname.lastname@example.org
NEW YORK, April 22, 2011 — If you have been involved in an auto accident that just didn’t feel right, it might not have been an accident at all. More and more criminals are devising elaborate staged vehicle accidents—complete with fake injuries—to collect on insurance policies, according to the Insurance Information Institute(I.I.I.). Not only can these staged accidents cost honest policyholders and auto insurers billions of dollars annually, but they create unsafe conditions on roads and highways—particularly when the scheme goes wrong.
- Swoop and Squat: Usually involves three vehicles; two are driven by criminals, the other is the victim. The driver of the “squat” vehicle positions his vehicle in front of the victim’s car. The driver of the “swoop vehicle” pulls ahead of the squat vehicle and internationally cuts it off, thus causing the squat vehicle driver to hit his breaks. The victim cannot react in time and rear ends the squat vehicle. The swoop vehicle races off and is not seen again. The innocent motorist states the swoop vehicle caused the accident, but because that driver cannot be located, the victim has to pay the vehicle damage and personal injury claims of passengers in the squat vehicle.
- Side Swipe: Typically occurs at busy intersections with dual left turn lanes. The criminal positions his vehicle in the outer lane. As soon as the victim’s vehicle drifts into the outer turn lane, the criminal side-swipes it.
- Panic stop: Here the criminal typically drives an older vehicle filled with passengers. The criminal positions his car in front of the victim’s while a backseat passenger in the criminal’s vehicle watches and waits for the innocent motorist to be distracted, for example, by a cellphone call. As soon as the victim is distracted, the driver slams on the brakes, causing the innocent motorist to rear-end the criminal’s vehicle. The victim’s insurance company must pay for vehicle damage as well as injuries that the passengers may claim to have suffered from the accident.
- Drive down: In this scheme, the victim merges his vehicle into traffic after being motioned to do so by the criminal. As the innocent driver begins to merge, the criminal speeds up and causes a collision. When questioned, the criminal denies motioning the victim to merge into traffic or gives excuses.
- People who suddenly appear at an accident scene and try to direct you to specific doctors and attorneys—these so-called “runners” are usually part of the criminal scheme as well.
- Physicians who insist you file a personal injury claim after an accident, especially if you are not hurt.
- Tow trucks that arrive on the scene without anyone having called them. These tow trucks might be working in concert with unscrupulous medical or legal providers.
- Call the police or highway patrol. Trust your instincts. Let the police know you suspect fraud. Obtain a police report with the officer’s name, even if the damage is minimal. If the report describes damage to the claimant’s car as a “nick,” it is harder for criminals to intentionally damage the car later and try to collect a larger claim against your insurance policy.
- Contact your insurance agent or company representative as soon as possible, regardless of who is at fault. Even if the accident appears minor, it is important that you let your insurance company know about the incident. Let them know you suspect fraud and why.
- Call the NICB’s toll-free hotline at 1-800-TEL-NICB (1-800-835-6422). Your call can be anonymous and could be eligible for a reward.
- The names and addresses of all drivers and passengers involved in the accident
- License plate numbers
- Make and model of each car
- Drivers license numbers
- Insurance identifications
- Names and addresses of witnesses
- Names and badge numbers of police officers or other emergency personnel
INSURANCE FRAUD RESOURCES
- Issues Updates: Insurance Fraud
- Facts and Statistics: Fraud
- Presentation: No-Fault Auto Insurance Fraud in Florida: Trends, Challenges & Costs
- Testimony: I.I.I. Testifies on No-Fault Auto Insurance Fraud in New York State
Insurance Information Institute, 110 William Street, New York, NY 10038, (212) 346-5500