Six Tips for Avoiding a Staged Car Accident

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Staged traffic accidents are on the rise, endangering the lives and boosting the car insurance rates of innocent drivers who may unwittingly think they're at fault.

Questionable claims from staged accidents increased 46.3 percent from 2007 through 2009, according to the National Insurance Crime Bureau, or NICB, a nonprofit agency in Des Plaines, Ill., funded by 1,100 property and casualty insurance companies nationwide to fight car insurance fraud and vehicle theft.

According to the NICB, the top five staged accident states for the period were Florida, 3,006; New York, 1,680; California, 1,619; Texas, 792; and Illinois, 433. The five cities with the most staged accident questionable claims were New York, 1,304; Tampa, Fla., 562; Miami, 511; Orlando, Fla., 422; and Houston, 376. (See videos of three common staged accidents below.)


Auto insurance fraud added $4.8 billion to $6.8 billion to auto injury claim payments in 2007, according to the Insurance Research Council's November 2008 study "Fraud and Buildup in Auto Injury Insurance Claims: 2008 Edition." NICB investigations in Florida, New York and California uncovered sophisticated, multistate rings that included the staged accident participants as well as doctors, chiropractors, lawyers and even body shop owners that profited from the car insurance scam.

"A lot of these are $1 million-plus claims cases," says Roger Morris, NICB chief communications officer. "That's what they're in this for, the medical side of it. You can see $200,000 in claims before you know it."

Multiple claims for one accident

One common element runs though most staged accidents. The "victim" vehicle will contain three or four passengers who will file medical claims against the victim's car insurance company in addition to a car damage claim.


Staged accidents are most common in "no-fault" states such as Florida and New York, where the insured stager can collect for bodily injury from their own car insurance company through their personal injury protection, or PIP, coverage.

Morris says the stagers often target young women and older adult drivers as they enter or exit a shopping mall or parking garage. If you are talking on a cell phone or appear otherwise distracted while driving, you're a perfect mark.

"There will be somebody sitting there at the curb and you pull up and they will wave you on by. The next thing you know, you're getting blocked and then getting clobbered," he says. "Don't always assume that it was an accident; it may well have been deliberate."


The NICB trains law enforcement and special investigations units of car insurance companies to recognize the patterns of staged accidents. "When they see multiple people going to the same clinic and multiple claims from one accident, that's what they need to look for," Morris says.

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