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Was Your Accident “Staged”?

Organized Scams Defraud Consumers and Insurers Alike, Costing Billions of Dollars Annually

If you have been involved in an auto accident that just didn’t feel right, it might not have been an accident at all. More and more criminals are devising elaborate staged vehicle accidents—complete with fake injuries—to collect on insurance policies, according to the Insurance Information Institute (I.I.I.). Not only can these staged accidents cost honest policyholders and auto insurers billions of dollars annually, but they create unsafe conditions on roads and highways—particularly when the scheme goes wrong.

“Staged auto accidents are a dangerous criminal activity that targets innocent drivers with increasingly bold schemes aimed at defrauding insurance companies,” said Loretta Worters, vice president with the I.I.I. “Not only do honest policyholders ultimately end up paying more for auto insurance, but those committing the fraud can cause serious injuries or death.”

How can you recognize the signs of a staged accident?  According to NICB, there are four common staged accident scenarios:

  • Swoop and Squat
  • Side Swipe
  • Panic Stop
  • Drive Down

For details and what to do if you suspect you are a victim of a staged accident – read more

 Source: Insurance Information Institute – News Release, Apr 22, 2011 


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