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 Steering Clear of Staged Accidents
 Tips to Help Your Clients Avoid Insurance Fraud on the Road

It happens more than you might think—a driver causes an accident to collect the insurance money -- and your clients could become a victim.

The Sudden Stop
“It happens like this,” says Hartford Special Investigations Manager Odie Waters, “I’m driving along, minding my own business, in rush hour traffic, and the car in front of me inexplicably slams on his brakes. I rear-end that car and I get blamed for the accident.”

The driver of the first car will claim that a “phantom” dog or child ran into the road, or that the car in front of him had stopped suddenly, although that car will not be involved in the accident. Any witnesses will have driven off long before police arrive, and it’s nearly impossible to prove a dog didn’t dart out.

Inattentive Targets in Traffic
The drivers in such a scam cruise clogged highways and city streets, watching the rearview mirror, looking for someone who is not paying attention. “We’ve all seen a woman putting on mascara in the rearview mirror or a man shaving on the way to work --maybe they’re on the phone, too,” Waters says. “Those people are potential targets. The driver will cross four lanes to get in front of that person.”

In the past, two cars might employ a tactic called the “swoop and squat,” where one car would crowd the victim from behind and another would stop suddenly in front. With today’s traffic density, however, a second car is rarely involved.

The Phantom Wave
Another type of staged accident can occur when a driver is trying to merge. The scam artist will wave him into the lane and then crash into the side of his vehicle. This can also happen when someone is backing out of a parking lot space. A second car will stop and wave the first car out, as if waiting for the space, but then drive into the first vehicle. In both cases, the scam artist denies stopping or waving, and police find the victim at fault for failing to yield the right of way.

Fraud Rings
In some cases, an attorney with explicit understanding of insurance policies and practices organizes these scams. The driver will be accompanied by a full carload of passengers to maximize the payout. Everyone in the car will visit the emergency room after the accident. Everyone in the car will treat at a chiropractor. In some cases, a chiropractor or other healthcare provider is part of the ring.

How The Hartford Combats Staged Accidents
When we have reason to suspect fraud, The Hartford investigates the claims histories of the driver and passengers, and we may also investigate the attorney and the healthcare clinic. We carefully review the circumstances of the accident and the claimants’ course of treatment, canvass the accident scene for witnesses, and interview participants. When fraud is found, we report the case to state and law enforcement authorities as appropriate.

How Your Clients Can Avoid Staged Accident

  • Pay attention to the road—no applying make-up, shaving, text messaging, reading, etc. Not only do these activities make your clients less effective drivers—they make them targets.

  • Be wary of “beater” cars—especially if they are changing lanes suspiciously. Often staged accidents involve a junk car that has already been in a few accidents. Even if the driver of such a car has no ill intents, the condition of the car might be an indication of a poor driver to be avoided.

  • Maintain a safe following distance.

  • Call police and the insurance company promptly after an accident. If the other driver discourages your client from doing so, it is all the more important to call promptly.

  • Tell the claims handler if the accident seems suspicious.

  • Call The Hartford’s Fraud Hotline at 1-800-547-WARN.