The New York State Department of Motor Vehicles (DMV) has issued a warning to all drivers. Why? Because a new scam is affecting driving: staged accidents. As you read, there are people who fake crashes on purpose to scam insurance companies and get some money. How do they do it? They can brake suddenly so that other cars hit them from behind, drive recklessly or do anything reckless to make it look like another driver was at fault. But… what if you get into one of these accidents? You could end up paying even if it wasn’t your fault. Below we’re going to tell you all the important details so that if you get into one of these fake accidents, you know how to react.
Staged car accidents?
Yes, they’re called “crash for cash,” and it doesn’t just affect insurance, it can also result in you ending up paying more for your policy without having done anything wrong. According to the DMV, 1,729 such incidents were reported in the state in 2023, a 14% increase from the previous year.
But how does this scam work? How can you avoid falling into one of these traps? Here’s everything you need to know.
These accidents occur when one vehicle is induced to collide with another, but it doesn’t stop there, scammers pose as doctors and lawyers to file injury claims. Basically, it’s like a bad movie plot that will make innocent drivers pay more money to their insurers.
But how does it work?
We’ll outline it for you so you can quickly identify it in case it happens to you (hopefully not)
- A vehicle brakes suddenly for no reason (all in the hope that the car behind will crash).
- False signals to get you to go ahead, and then accelerates and crashes into you.
- False witnesses who give a false version of the accident to make you responsible.
If this happens to you, don’t lose your temper. We’re going to give you some tips (according to what the DMV advises) so you can avoid them:
- Always keep a safe distance, following the 3-second rule.
- Be wary of aggressive drivers. If the vehicle in front of you changes lanes repeatedly, brakes for no reason, or tries to pressure you, stay calm and don’t fall into their game.
- Never trust the signals of other drivers.
- Use a camera on your car’s dashboard (they are called Dash cams and are used specifically to have evidence in case of an accident).
Steps to follow after the accident.
If you are sure that the accident you have been involved in was intentional, there are steps you can take to protect yourself (and your wallet)
- Call the police and report the accident immediately to your insurance company.
- Take photos of the scene and record videos, including the license plates of all nearby vehicles and people.
- Do not even think of giving cash or accepting settlements without an official report, nor allow companies that have not requested your insurance company to report your vehicle.
- Be wary of spontaneous witnesses who appear out of nowhere supporting the other driver’s version.
- Contact your insurance company to report the incident and ask for legal advice, and contact the DMV before documenting what happened.
How does this affect insurance?
According to the Insurance Information Institute, New York insured vehicles have seen their policies go up by between $100 and $300 due to these accidents, and it is estimated that almost 10% of total insurance payments in New York are due to this.
So, these accidents do not benefit anyone and ultimately cause all drivers to see their policies go up in price. That is why the DMV recommends that drivers take defensive driving courses so that they can lower their insurance prices.
Be careful on the road!