We pay for Fraud
According to the National Insurance Crime Bureau, they estimate property and casualty insurance fraud is a $20 billion dollar-per-year business.
Staged auto accident such as "swoop and squats", are attempts to obtain money from insurance companies by falsifying information on insurance claims and when they work cost taxpayers and insureds alot of money.
Approximately 10-20 percent of all auto claims arise from fraud. In Southern California, experts cite 25-50 percent of auto insurance claims are fraudulent as stated by the California Department of Insurance.
Auto fraud takes several forms, including staged auto accidents. Here's a few examples:
Swoop and squat:
Innocent victims are targeted by organized auto-accident rings.
A crime-ring member causes a collision by stopping abruptly in front of a motorist. Ring members then file claims for neck pain or other soft-tissue injuries, which are difficult to verify.
Paper Accident: Organized rings and "cappers" actively solicit others in the community to participate in the creation of accidents that only exist on paper.
Auto Property: Insureds and/or body shops fraudulently report that parts of vehicles have been damaged or lost, when in fact they have not. Insured have fraudulently reported their vehicle stolen or vandalized in order to collect on insurance.
Who pays the tab for this crime? We all do, said the Western Insurance Information Service (WIIS). The NICB estimates that fraud adds about 15-20 percent to the average insurance premium, translating into $200 extra per year per household.
We recommend you take the time to review your policy coverages with your agent or broker. It's also important to shop your insurance premium and coverages to see if you have the best available...
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