Was Your Accident Staged?

Was Your Accident Staged? https://learningcentre.statefarm.ca/auto/safety/was-your-accident-staged/ bb3 Jan 17, 2013

By Staff Writer

  • Email
  • Print

Picture this: You're driving along when a car suddenly cuts in front of you and the driver slams on the brakes. With little reaction time, you will likely hit the vehicle and be at fault for the accident. It's possible you've been set up as part of an auto insurance fraud scheme.

There's big money at stake in these intentional accidents, which are designed to extract insurance payments under false circumstances. A study conducted for the Insurance Bureau of Canada (IBC) by KPMG Forensic estimated that the costs of auto fraud in Ontario alone run $770 million to $1.6 billion per year.

Watch for these signs of a possible intentional accident:

  • A driver waves you around, then slams into you as you pass. Or the driver intentionally slides into you if your car crosses a lane line even for a moment. The driver may be counting on the element of surprise to make you doubt your response.

  • In a parking lot incident, an eyewitness corroborates the other driver's story. This bystander might be an accomplice.

  • The other driver insists the damage to his car was caused by your vehicle. The damage could have happened in an earlier mishap.

  • The driver and/or passengers may be relaxed and move about easily until authorities arrive. Only then do they begin to complain of injuries.

  • A tow truck may show up very quickly with recommendations for a specific lawyer or medical/rehabilitation clinic. This convenience may suggest the tow truck driver might receive a kickback from the lawyer or medical/rehabilitation clinic.

Every fraudulent claim paid is an abuse that drives the cost of insurance higher?for the innocent persons involved well as for all policyholders.

State FarmŽ is committed to bringing down the cost of auto insurance premiums by raising awareness of frauds, and has joined Insurance Bureau of Canada in its consumer education campaign for insurance affordability.

Learn more about auto fraud prevention from IBC. And follow these suggestions from State Farm about what to do after an auto accident.March is National Fraud Protection Month. Canada's Competition Bureau offers these ways to protect yourself from fraud.