Protect Yourself from Staged Auto Accident Fraud: Top Schemes and Tips to Stay Safe on the Road

Staged auto accidents are a growing problem across the United States, with fraudsters targeting unsuspecting motorists to cash in on false insurance claims. These fraudulent schemes not only put drivers in harm’s way but also contribute significantly to rising insurance costs, costing billions in fraudulent claims each year.

Here’s a breakdown of common staged accident schemes and essential tips to help you avoid falling victim to these dangerous scams.

Common Staged Accident Schemes

1. Left Turn Drive Down
   • How it Works: A driver signals for you to turn left, seemingly granting the right of way. However, as you proceed, another car intentionally collides with you, making it appear you turned into oncoming traffic. The original signaling car quickly leaves the scene, and the at-fault passengers claim injuries.
   • Outcome: A fraudulent claim is filed against your insurance, and scammers profit unless the fraud is detected.
2. Right Turn Drive Down
   • How it Works: While making a right turn, a vehicle rear-ends you on the left side. The occupants accuse you of merging into traffic without caution and claim injuries.
   • Outcome: Criminals gain financially through claims filed against your insurance if fraud isn’t suspected.
3. Curb Drive Down
   • How it Works: As you pull away from a curb, a vehicle collides with you from the left. The at-fault driver accuses you of merging into traffic unsafely and files for damages.
   • Outcome: Fraudsters file claims, profiting unless insurance companies uncover the deception.
4. Swoop-and-Squat
   • City Streets Version:
     • How it Works: Three vehicles are involved, with two driven by scammers and one unsuspecting victim. The “squat” car pulls in front of the victim while the “swoop” car brakes sharply in front of it, causing the squat car to brake suddenly, leading to a rear-end collision.
     • Outcome: Fraudsters make claims for injuries and damages, with the swoop car fleeing the scene.
   • Freeway Version:
     • How it Works: This version involves four cars, where the third scammer’s car boxes in the victim, making escape impossible. After the squat car is rear-ended, both the swoop and box-in vehicles flee.
     • Outcome: The victim is left with the financial burden as scammers collect insurance payouts.

Fast Facts on Staged Auto Accident Fraud

• Fraudulent Claims: Around 10% of property-casualty claims are estimated to be fraudulent, with staged accidents playing a significant role.
• Insurance Costs: These scams drive up insurance rates, as companies pass on the costs of fraudulent claims to policyholders.
• High-Risk Areas: Cities like New York, Los Angeles, and particularly the state of Florida see high rates of staged accident incidents.
• Common Traits: Staged accidents often involve minimal physical damage and frequently target middle-aged female drivers.
• Legislation: At least 15 states and Washington D.C. have enacted laws to combat staged accident fraud specifically.

Protecting Yourself from Staged Accident Scams

• Stay Vigilant: Exercise caution when driving in densely populated areas, high-traffic intersections, and wealthier neighborhoods, which are popular targets for scammers.
• Document Everything: If involved in an accident, thoroughly document the scene. Take multiple photos and videos, and collect witness statements when possible.
• Report Suspicious Activity: Inform your insurance provider and the authorities if you suspect fraudulent behavior. Prompt reporting can help initiate a thorough investigation.
• Consult a Personal Injury Attorney: If you become a victim of staged accident fraud, seeking legal counsel can protect your rights and help secure fair compensation.

Final Thoughts

Understanding the schemes that scammers use and practicing safe driving habits can be your best defense against staged accident fraud. By staying informed and alert, you can protect yourself from becoming a target of these dangerous and costly scams. Remember to document every detail in the event of an accident, and report any suspicious behavior to your insurance company and local authorities.