All drivers are being warned by the New York State Department of Motor Vehicles (DMV). Why? Because driving is being impacted by a new scam: faked accidents. As you read, some people intentionally fabricate accidents in order to defraud insurance companies and profit.
What do they do?
They can drive carelessly, brake abruptly, or do anything else careless to give the impression that another driver was at fault. However, what if you are involved in one of these mishaps? Even if it wasn’t your fault, you can still have to pay.
We’ve included all the pertinent information below so you’ll know what to do in the event that you are involved in one of these fictitious accidents.
Car crashes that have been staged?
Yes, they are known as “crash for cash,” and they can effect more than simply insurance; you might wind up paying more for your policy even though you didn’t do anything wrong. The DMV reports that 1,729 of these occurrences occurred in the state in 2023, a 14% increase over the year before.
However, how does this fraud operate? How can you stay clear of these pitfalls? This is all the information you require.
These accidents happen when two cars crash, but the scammers don’t stop there. They then pretend to be lawyers and physicians in order to file injury claims. In essence, it’s a lousy movie storyline that will force innocent drivers to pay their insurers more.
However, how does it operate?
We’ll lay it out for you so you can spot it easily in the unlikely event that it occurs to you.
A car abruptly and uncontrollably brakes in the hopes that the car behind it would collide.
- Gives you false indications to go, then speeds up and collides with you.
- False witnesses who fabricate an accident story in order to hold you accountable.
Don’t get angry if this occurs to you. To help you prevent these, we’re going to provide you some advice based on what the DMV recommends:
Observe the 3-second rule and maintain a safe distance at all times.
- Watch out for hostile drivers. Remain composed and avoid playing the game if the car in front of you keeps changing lanes, brakes without warning, or tries to put pressure on you.
- Never rely on other drivers’ signals.
- Install a camera on the dashboard of your vehicle. These are known as dash cameras, and their purpose is to provide proof in the event of an accident.
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Actions to take following an accident
There are precautions you can take to safeguard yourself (and your finances) if you are certain that the accident you were in was deliberate.
- Make a police call and notify your insurance provider of the accident right away.
- Record films and take pictures of the area, making sure to include the license plates of any cars and persons in the area.
- Never even consider making a payment or accepting a settlement without a formal report. You should also never permit businesses that haven’t asked your insurance carrier to report your car to do so.
- Watch out for impromptu witnesses who show up out of the blue to corroborate the other driver’s story.
- Before recording what happened, get in touch with the DMV and your insurance provider to report the event and seek legal counsel.
What impact does this have on insurance?
The Insurance Information Institute estimates that these events have caused the premiums of insured automobiles in New York to increase by $100 to $300, accounting for nearly 10% of all insurance payments in the state.
Therefore, no one gains from these collisions, and in the end, all drivers notice an increase in the cost of their insurance. For this reason, the DMV advises drivers to enroll in defensive driving classes in order to reduce their insurance costs.
