SAN DIEGO - With summer vacation looming and many Californians traditionally driving more frequently or longer distances, Insurance Commissioner Steve Poizner warned area drivers to be alert for staged auto collisions.In 2006-2007, 14,565 referrals out of 24,011 insurance fraud referrals received by the California Department of Insurance - 61 percent - were for suspected automobile insurance fraud.
Nearly $164 million could have been lost by insurance companies in 2006-2007 if the auto insurance fraud wasn't discovered. Actual loses, however, are subsequently built into the insurance companies' pricing structures.
In San Diego there were 985 suspected fraudulent claims (SFCs) in 2006-2007. In fact, there were 41 arrests made on one case.
There are primarily three schemes typically used in staged collisions:
- Panic stop
- Start-and-stop
- Swoop-and-squat
People who create these pre-planned accidents, also known as stagers, look for high value targets, such as commercial vehicles, expensive luxury vehicles, and vehicles owned by cities or counties. They are considered "high value" because of the virtual guarantee of insurance coverage.
The following signs may tip-off a driver of fraudulent activity:
- The other car is packed with passengers;
- The other driver has a relatively new insurance policy;
- The other car is in poor condition or has a "salvage" title;
- Traffic was flowing smoothly and the other driver stopped suddenly;
- The other driver and/or the passengers make extra effort to avoid conversation about the other vehicles in the area;
- There is a witness that substantiates everything the other driver says; and
- The other driver and his passengers all claim injury despite relatively minor collision damage to the vehicles.
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