Many people think of fraud as a non-violent crime, but vehicle insurance scams — including staged traffic accidents — can cause serious injury and even death.
Besides adding hundreds or thousands of dollars to honest drivers' insurance premiums, staged collisions have injured many innocent motorists and their passengers. For information about related vehicle and cargo coverage options, see Auto Transport Insurance (Cargo & Liability).
How Does It Work?
These criminally staged collisions usually involve several suspects coordinating to target an unsuspecting driver. The victim is typically the driver of another vehicle who is maneuvered into a crash so the suspects can file a fraudulent claim.
Swoop and Squat
Two or more suspects use two different vehicles to trap a target, often choosing an older car with a single occupant so there are no witnesses. The "squat" vehicle positions itself in front of the victim and slows to reduce the gap.
Then the "swoop" vehicle suddenly cuts in front of the squat, forcing the squat to brake sharply. The unsuspecting driver rear-ends the squat, while the swoop vehicle disappears and the squat driver claims an unknown car cut them off.
The Drive Down or Wave On
In this scheme, suspects wait at a parking lot entrance or an intersection and wave or yield the right-of-way to the victim. When the victim proceeds, the suspect intentionally accelerates and causes a collision.
What Can Drivers Do to Reduce the Risk of Being a Victim?
- Stay aware of your surroundings by watching vehicles several cars ahead and behind, and keep sufficient space around your car.
- Use caution when turning in front of another vehicle, even if the other driver appears to yield.
- Stay within your lane lines, since suspects may target drivers who drift toward the center line.
- After an accident, count passengers and collect their information to verify who was actually present and to spot inflated claims.
- Avoid driving when stressed, distracted, or very tired, because reduced attention makes you more vulnerable to staged incidents.
- Keep a camera or phone ready to photograph the scene, license plates, and vehicle occupants.
Always call the police and request a copy of the report; if damage appears minor, ask the officer to note that, which can deter inflated claims. If you need coverage information or want to talk to an agent, provide the report details when you contact an insurer.
If you are connected to the auto repair industry or have concerns about shop-related claims, review options for business coverage at Miscellaneous Auto Repair Services Insurance.
Alert law enforcement if you suspect a collision was staged. These scams often involve broader criminal networks that may include unscrupulous medical providers or lawyers who knowingly assist with fraudulent claims.
Frequently Asked Questions
How common are staged traffic accidents?
Staged accidents are a growing problem and vary by region; local law enforcement and insurance investigations often report increases where organized fraud rings operate.
What immediate steps should I take at the scene?
Call the police, document the scene with photos, collect IDs and insurance information, and avoid admitting fault or negotiating with the other party.
Can my insurance rates go up after such an accident?
If you are found not at fault, your rates may still be affected depending on your insurer and claim history, so report the incident promptly and provide documentation.
Who should I contact if I suspect fraud?
Notify the police and your insurer immediately; many carriers and states also have fraud hotlines to report suspicious claims.