All drivers in the state must be aware of the urgent warning issued by the New York State Department of Motor Vehicles (DMV). Drivers need to be aware of an escalating trend involving staged car crashes, which insurers classify as acts of insurance fraud that result in thousands of dollars in expenses. More people are committing staged accidents as this fraudulent practice causes drivers to pay more in insurance and might face legal consequences. The following information provides essential details to safeguard your car insurance and yourself against staged car crashes.
Drivers need to be cautious about the rising trend of “crash for cash” schemes, which are becoming more frequent in fake accident scenarios.
The number of staged car crashes or “crash for cash” schemes has significantly risen throughout New York. The DMV statistics show that the number of intentional accidents in the state grew by 34% between 2021 and 2022, while it increased by another 14% in the following year. Besides costing insurance companies, the fraudulent schemes produce higher premium rates that all policyholders must bear. The DMV statistics show that New York is the second state with the most staged accidents in the country during 2023, resulting in 1,729 reported incidents statewide.
Coordinated staged crashes happen when a car containing numerous passengers breaks hard to set off a following-vehicle accident. After inducing victims to collide with their cars, the scammers pretend to be doctors and lawyers who file baseless injury claims. Such acts drive insurance premiums for insurers and generate financial dangers for blameless motorists.
Use these defensive driving instructions from experts to stop staged car accidents from ever occurring.
The DMV actively requests drivers to develop defensive driving abilities as a way to stop the escalating problem. During his remarks, Commissioner Mark Schroeder stressed that drivers should watch for what other motorists do ahead of time while avoiding close following and maintaining readiness during emergency situations. Implementing these driver practices will decrease the probability that a driver will become part of staged crashes.
As per the recommendation of the New York Thruway Authority, drivers must practice a three-second rule to establish safe following distances. Maintaining more than three seconds of space between your vehicle and the leading car in front of you is necessary. Adverse weather conditions and poor visibility require drivers to increase their following time to five seconds. Simplifying your driving distance from other vehicles through basic measures creates an effective barrier against accidents that primarily result from rear-end collisions at a 40% frequency rate.
These steps should be followed after an accident as protection against insurance fraud
To protect yourself from insurance fraud, you should follow these steps defined by the DMV after experiencing a vehicle collision
- Report all accidents by calling the local police department, then immediately contact your insurance provider.
- Record the accident site by photographing vehicle damage and obtaining all parties’ driver’s license tags and insurance records.
- It is essential to refuse to exchange money with the other driver and avoid getting help from unsolicited tow companies.
- Exercise Caution Against Any Shocked Individual Demonstrating Surgical Guidance Toward Particular Physicians Or Legal Advisors.
- You should report the accident to the DMV before documenting all the facts about the incident.
Safeguarding yourself from insurance fraud becomes possible by following these safety measures that protect you legally and financially. Staged crashes generate substantial economic losses to insurance customers that every driver must bear.
The high costs from fraudulent staged crashes are negatively affecting your insurance prices.
According to the Insurance Information Institute, New York car insurance policyholders face yearly premium rises between $100 to $300 due to fake traffic accidents. Fictitious automobile accident schemes reportedly contribute to around 10 percent of the total insurance payments throughout New York. The DMV uses defensive driving courses certified by the department to help drivers decrease their expenses.
Validated defensive driving courses serve two purposes: improving driving abilities, simultaneously deducting points, and decreasing insurance costs by 10% annually for three consecutive years. New York experiences a rising number of staged motor vehicle accidents that result in annual losses totaling millions of dollars between drivers and insurance providers.
The DMV has created guidelines to fight this issue, and drivers who follow these rules, along with practicing defensive driving and proper crash scene documentation, reduce their chances of falling victim to staged car crashes. Remaining aware of developments alongside staying informed will help decrease your premiums and safeguard your road safety whenever you drive.
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