What are Staged Auto Accidents?

A staged auto accident is the deliberate collusion of two or more vehicles caused to file fraudulent bodily injury insurance, or, in some cases auto insurance damage claims. Usually such "accidents" involve low speed rear end or sideswipe type collisions, resulting in little damage to the vehicles.

Often they are caused by members of organized rings, which may include drivers, passengers and witnesses, with the collusion of dishonest medical providers and attorneys. The ring’s organizers receive most of the claim proceeds with only small amounts paid to the so-called "victims" or the actual participants in the accident.

Individuals with knowledge of insurance claim procedures and with access to dishonest medical and legal practitioners can also perpetrate staged auto accidents as a crime of opportunity

Who is vulnerable to Staged Auto Accidents?

Anyone can be victimized; however, the elderly, and drivers of newer, luxury, fleet and commercial vehicles are often targets, because perpetuators look for and seek to involve vehicles carrying high liability insurance coverage in accidents.

What are the Costs?

It is believed that a significant portion of the estimated $20 billion paid out for fraudulent P&C claims is due to staged auto accidents of this nature. 

What are the Indicators of a Staged Auto Accident?

• Accidents caused by the sudden stop of a vehicle alleging they were avoiding a phantom vehicle, an animal or a child in the road, or chain reaction type collisions initiated by a vehicle stopping for no apparent reason.
• Accidents caused by the sudden stop of a vehicle alleging they were avoiding a phantom vehicle, an animal or a child in the road, or chain reaction type collisions initiated by a vehicle stopping for no apparent reason.
• The vehicle causing the accident is an older, large car and often has previous collision damage.
• The operator or passengers do not wish to call the police.
• An overly eager "witness" materializes.
• The operator cannot produce a license, or vehicle information and passengers have no ID

How to protect yourself

1. Always call the police to the scene (most important). Police are trained to investigate and document accidents. The police report will generally prevent after the fact introduction of "injured passengers" or additional damage to the claim.
2. Carry a disposable camera in the glove box and photo the vehicles and passengers at the scene.
3. Call your own tow truck. Some tow truck operators who rush to the scene are connected to fraud rings. Ask the police at the scene to call, or try to use AAA or a reputable source to dispatch a tow truck should you require one.
4. Exercise extra caution after stopping, at merging intersections or at traffic signals, anywhere that the sudden action of another vehicle can cause a collusion.
5. Notify your agent or insurance company, ASAP, after being involved in an accident.

What is being done to combat this fraud?

• Federal & state law enforcement agencies have established task forces to investigate and prosecute these frauds.
• Insurance Companies have created special investigative units (SIUs) to investigate questionable claims.
• The Insurance Department has undertaken programs to alert insurance consumers of fraud problems.

Who should you contact if you believe you are being victimized by insurance fraud?

1. Your insurance company’s SIU (tell the claim person you suspect fraud and ask to speak to an SIU investigator, or call the 800 hot line)
2. Call the National Insurance Crime Bureau Fraud Hotline (NICB) at (1-800-Tel-NICB)
3. Contact the Connecticut Insurance Department at

Connecticut Insurance Department
Anti-Fraud\Arson Program
PO Box 816
Hartford CT 06142-0816