Auto insurance fraud on the rise in US, staged accidents ‘more brazen’ than before — here’s how to avoid becoming a victim

Staged car accidents – fraudulent schemes designed to utilization security systems – are becoming much predominant connected roadways crossed nan U.S.

The emergence successful these events is becoming a important interest successful California, New York and Florida, according to nan Insurance Information Institute.

Mark Friedlander, institute spokesperson, told FOX Business that “unscrupulous actors” are progressively capitalizing connected engaged roadways to shape collisions and rate successful connected security payouts, peculiarly successful high-traffic states.

“We’ve seen these types of car fraud scams for galore years. This is thing new. But we’re seeing an uptick successful galore areas,” Friedlander said.

“You typically spot them connected interstates successful highly populated, highly congested areas of nan country,” he added.  

The institute’s study of manufacture information from 2022 and 2023 shows a 14% summation successful staged accidents connected an yearly ground successful New York and a 58% spike successful New Jersey, among nan highest successful nan U.S. 

California recorded nan highest measurement of staged accidents successful 2023 pinch 5,366 cases. New York classed 2nd pinch 1,729, followed by Florida pinch 1,110.

Friedlander said nan inclination is besides being exacerbated by nan perpetrators’ ability to evade prosecution. 

“While states are trying to ace down connected these schemes, galore of nan fraudsters that run successful these states are not being caught,” he said. As they “continue to beryllium much brazen, much bold successful causing shape accidents, it multiplies,” he added. 

Friedlander said nan alleged staged car clang connected nan Belt Parkway successful Queens, New York, which went viral aft being caught connected dash camera footage, is an illustration of “how brazen and bold these unscrupulous actors are” becoming.

The dash cam connected nan victim’s car shows a metallic Honda cutting her disconnected earlier it proceeded to extremity short and reverse into her. 

A spokesperson for nan New York City Police Department told FOX Business that detectives person interviewed nan victim, and nan investigation remains ongoing by nan NYPD Criminal Enterprise Investigation Unit’s Fraudulent Collision Investigation Squad.

Friedlander said nan script is rarer. Typically, nan unfortunate is sandwiched successful betwixt 2 cars that are progressive successful nan scheme. One car will slam connected its brakes successful nan beforehand and different car will deed nan unfortunate from behind. 

In immoderate cases, these criminals are besides moving “in collaboration pinch unscrupulous aesculapian professionals for illustration wounded clinics, arsenic good arsenic unscrupulous attorneys that activity pinch them to writer nan drivers that are nan victims,” he said.

While these staged accidents are costing insurers roughly $20 cardinal per year, each drivers are forced to “cover nan losses incurred by security companies from these fraud schemes,” Friedlander said.

He estimated that staged accidents costs each U.S. driver $100 to $300 much successful yearly car security premiums.

A caller study published by Insurify, an security comparison shopping website, shows nan mean U.S. complaint for afloat car security surged to $2,329 successful nan first half of 2024.

That marks a 15% summation from 2023 and a stunning 48% spike erstwhile compared pinch 2021.