That Car Crash Was No Accident

Videos Show How Staged Accidents Aim to Cash In on Insurance Claims

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May 04, 2010, 05:57 ET

DES PLAINES, Ill., May 4 /PRNewswire/ -- The National Insurance Crime Bureau (NICB) warned today that criminals are targeting innocent drivers with increasingly bold schemes aimed at defrauding insurance companies out of millions of dollars.

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"Across the country we're seeing an alarming number of what we call staged accidents," said Joe Wehrle, NICB president and chief executive officer. "These are crashes that are made to look like accidents, but in reality are carefully orchestrated scenarios aimed at collecting medical and vehicle damage payments from insurers. The simple truth is they are expensive and dangerous. We are working with our member insurance companies and law enforcement partners to put the people that commit these crimes behind bars."

Wehrle noted recent investigations in California, Florida and New York that have uncovered staged accident rings and led to the arrest of doctors, chiropractors, lawyers and others who participated in these schemes in return for their share of the lucrative payments from insurance claims.

Unless someone becomes suspicious, many of these staged accidents go undetected. So the NICB has created a series of videos demonstrating some of the most common types of staged accidents. They are available at www.nicb.org.

"We want motorists to be aware of these schemes and to know what to look for in case they are targeted and become a victim of a staged accident," said Wehrle. "We also think these videos will help insurance company personnel and law enforcement be on the alert for these kinds of crashes and be willing to give them a closer look to determine if fraud was involved. Insurance companies want to pay legitimate claims in a timely fashion, but no one wants the crooks to cash in at the expense of honest policyholders."

NICB recommends the following actions to avoid being a victim of a staged accident:

Avoid tailgating to ensure there's plenty of distance between you and the vehicle in front of you in case they suddenly hit the brakes.

Even if damage is minimal, call the police to an accident scene and obtain a police report with the officer's name. This makes it harder for the criminal to intentionally damage the car later and try to collect a larger claim against your insurance policy.

Use your cell phone camera or carry a disposable camera in your car to document any damage and take photos to verify the number of passengers in other vehicles.

Avoid "runners" and "cappers" – people who suddenly appear at an accident scene and try to direct you to doctors and attorneys. They are usually part of the criminal scheme.

Steer clear of tow trucks that arrive on the scene without anyone having called for service. These are often cappers for body shops.

Be wary of medical providers who insist you file a personal injury claim after an accident, especially if you are not hurt.

Anyone with information concerning staged accident and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422), or by visiting our Web site www.nicb.org. You may also text your information to TIP411, keyword "FRAUD" and remain anonymous if you so desire.

About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy and public awareness. The NICB is supported by nearly 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote nearly $343 billion in insurance premiums in 2008, or more than 82 percent of the nation's property/casualty insurance.

SOURCE National Insurance Crime Bureau