Staged Accidents Cost Big Money in Insurance Fraud
is seeing a growing incidence of insurance fraud, specifically, in auto bodily injury (ABI) cases. Part of the increase in claims is due to contrived accidents, which are also called set up auto accidents or staged accidents. These accidents involve a large number of people – both “victims” and service providers (car repairs, doctors, chiropractors) – and cost insurance consumers billions of dollars in increased premiums. The way it works is this: Several vehicles, say up to 10, are hired. The drivers of the vehicles and their passengers are paid a stated amount (could be $1,000 - $2,000) to participate. They drive in a pack on the highway, box in a car and cause an accident. Often that is stopping suddenly in front of the [...]