Fraud Watch: Staged Auto Accidents

In cooperation with the Los Angeles Police Department (LAPD), the National Insurance Crime Bureau (NICB) has produced new high definition videos showing some of the most common methods of staging motor vehicle accidents to defraud insurance companies.

According to NICB: “Staged traffic accidents are on the rise, endangering the lives and boosting the car insurance rates of innocent drivers who may unwittingly think they’re at fault. Staged accidents are most common in “no-fault” states such as Florida and New York, where the insured stager can collect for bodily injury from their own car insurance company through their personal injury protection, or PIP, coverage.”

“Staged accidents are usually conducted by organized groups that target drivers and vehicles that are likely to be insured. The organizers frequently recruit participants who receive a cash payment to join in the scheme and to claim they were injured in the crash. The organizers then have the medical providers who are in on the scheme bill the auto insurance companies for medical treatments that may be unnecessary and which may or may not be completed.”