Many think of fraud as a non-violent crime. In reality, vehicle insurance scams, including staged traffic accidents, are far from non-violent.
Aside from costing honest consumers hundreds to thousands of dollars in added insurance premiums, this steadily growing form of fraud has resulted in countless injuries and deaths to innocent victims of the scams.
Data from the National Insurance Crime Bureau shows that staged traffic accidents have rapidly become a leading source of insurance fraud nationwide.
For practical steps on dealing with claims and coverage issues after an accident, see Negotiating Auto Insurance Claims and Saving on Coverage.
How Does It Work?
These criminally staged collisions frequently involve several suspects driving cooperating vehicles. The victim is the driver of another vehicle who is being targeted by the suspects staging the collision for their own financial gain.
The suspects will most often use one of two techniques:
- Swoop and Squat.
Two or more suspects drive two different vehicles and target an unsuspecting vehicle, most often an older model that contains only one victim so there are few or no witnesses.
The one or two suspects in the squat vehicle position their car in front of the victim's vehicle and slow to create a small gap. Then a swoop vehicle suddenly changes lanes to cut in front of the squat, causing the squat vehicle to brake hard and stop. The innocent victim often rear-ends the squat while the swoop vehicle is gone and the squat driver claims an unknown car cut them off.
- The Drive Down or Wave On.
In this version, the suspect(s) are stopped at an entrance or intersection and wave on or yield the right-of-way to the victim. When the victim proceeds, the suspect intentionally accelerates into the victim to cause a collision.
What Can Drivers Do to Reduce the Risk of Being a Victim?
- Stay aware of your surroundings, paying attention to what vehicles several in front, behind, and beside you are doing and maintain sufficient room between you and others.
- Use caution when making a turn in front of another vehicle, even if they yield the right-of-way.
- Pay close attention to staying within the lane lines; suspects may seek drivers who drift across the center line and then claim a sideswipe.
- After any accident, count the number of passengers and get their personal information; more people may be listed on a claim than were actually present.
- Avoid driving when stressed, distracted by a phone, map, or food, or unusually tired, as reduced attention increases vulnerability.
- Keep a camera or use your phone to photograph the scene, license plates, and vehicle occupants after an accident.
- Always call the police and obtain a copy of the police report; if damage appears minor, ask the officer to note that fact to make fraudulent inflation of the claim more difficult.
- Alert the authorities if you believe the accident was staged.
For additional consumer-focused tips on reducing auto costs and coverage choices, see 10 Ways to Save on Auto Insurance.
If you suspect fraud, talk to an agent about your concerns and the best next steps for reporting the incident.
In closing, these staged traffic accidents often involve a broader criminal network beyond the drivers, and may include unscrupulous medical providers or other parties who assist in fraudulent claims.
Frequently Asked Questions
What should I do immediately after an accident that feels staged?
Make sure everyone is safe, call the police, document the scene with photos, exchange information, and avoid admitting fault at the scene.
What evidence helps prove an accident was staged?
Photos of vehicle positions and damage, dash-cam footage, witness statements, and police reports noting inconsistencies can all help support an investigation.
Should I still call the police if the other driver wants to handle it privately?
Yes. Always call the police so there is an official report; staged-accident rings may pressure drivers to avoid police involvement.
When should I report suspected fraud to my insurer or authorities?
Report suspected fraud as soon as you can after the incident so investigators can document evidence and begin inquiries promptly.