Help fight  fraud and higher premiums

The Connecticut Insurance Department wants you to know how to spot, avoid and report suspected auto collision fraud.

According to information on the department’s Web site, a staged auto accident is the deliberate collision of two or more vehicles in order to file fraudulent bodily injury insurance, or, in some cases, auto insurance damage claims. Usually such “accidents” involve low-speed rear end or sideswipe-type collisions, resulting in little damage to the vehicles.

According to the department, anyone can be victimized by these fraudulent accidents; however, the elderly and drivers of newer, luxury, fleet and commercial vehicles are often targets, because perpetrators look for and seek to involve vehicles carrying high liability insurance coverage in accidents.

It is believed that a significant portion of the estimated $20 billion paid out for fraudulent property and casualty claims is due to staged auto accidents. Some estimates indicate that $200 per year in additional premiums for each auto insurance policy issued is due to fraud.

Look for these signs:

• Accidents caused by the sudden stop of a vehicle with the driver alleging he or she was avoiding a phantom vehicle, an animal or a child in the road.
• The vehicle causing the accident is an older, large car and often has previous collision damage.
• The operator and passengers don’t want to call the police.
• An overly eager “witness” materializes.

• The operator cannot produce a license or vehicle information, and passengers have no identification.

If you’re involved in an accident, always call the police to the scene. Police are trained to investigate and document accidents. The police report will generally prevent after-the-fact introductions of “injured passengers” or additional damage to the claim. You can also carry a disposable camera in your glove box and photo the vehicles and passengers at the scene.

Notify our office as soon as possible after being involved in an accident, and if you suspect fraud, call the National Insurance Crime Bureau Fraud Hotline  at (800) Tel-NICB or contact the Connecticut Insurance Department at (860) 297-3933.