In many states, particularly those with no-fault insurance laws, staged car accidents are on the rise. Criminals stage these to get money from insurance companies. Some of these have some innocent victims while other do not. Insurance fraud could be a significant issue that raises rates for almost every person -- and states are aiming to battle the bulge.
Source for this article: Staged vehicle accidents on the rise by Car Deal Expert
How it works to stage a automobile accident
A car accident that is staged is when an accident is cause to make money. There are numerous types of schemes. Some consist of cars that are filled with lots of people that have a minor accident. All of the passengers then claim injuries. Others set up innocent drivers for an accident that they could not stay away from, and then must pay for. A staged car accident is generally difficult to keep away from and even more difficult to prove.
Cost that comes with staged car accidents
The cost of this can be very high. In injuries, passengers can claim many money. Damage to automobiles can add another 15 to 30 thousand dollars per car. The person who isn't at fault can also have their insurance costs increased. In no-fault insurance states, the cost of insurance in general can spike. This is just the financial cost -- there is also a very real danger of personal injury and increased vehicular-related death.
The rise in staged accidents
The number of staged accidents is hard to determine. 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 are in the top five for staged accidents.
Commonly staged accidents
youtube.com/watch?v=JGeIrm5UXN0
Citations:
Coalition against insurance fraud
insurancefraud.org/staged_accidents.htm