The New York State Department of Motor Vehicles (DMV) has issued an urgent warning that all drivers in the state need to be aware of.
Insurers consider staged auto accidents, which cause thousands of dollars in charges, to be an increasing trend that drivers should be aware of.
As a result of this dishonest activity, which raises insurance premiums and may result in legal repercussions, more people are staging accidents. The following details are crucial for protecting both you and your auto insurance against fictitious auto accidents.
Because “crash for cash” schemes are becoming more common in fictitious accident scenarios, drivers should exercise caution.
In New York, the number of “crash for cash” or manufactured auto accidents has dramatically increased. According to DMV records, the state’s deliberate accident rate jumped by 34% between 2021 and 2022 and by an additional 14% the following year.
The fraudulent tactics not only cost insurance firms money, but they also result in higher premium rates that all policyholders must pay. According to DMV data, with 1,729 recorded incidents statewide in 2023, New York ranks as the second most staged accident state in the nation.
When an automobile carrying a large number of passengers breaks hard to cause a following-vehicle collision, this is known as a coordinated staged crash.
The scammers pose as physicians and lawyers and then submit fictitious injury claims after tricking victims into colliding with their autos. Such actions create financial risks for innocent drivers and raise insurance rates for insurers.
To prevent staged auto accidents, follow these defensive driving tips from professionals.
In an effort to curb the growing issue, the DMV aggressively encourages drivers to learn defensive driving techniques.
Commissioner Mark Schroeder emphasized in his remarks that drivers should be aware of what other drivers are doing in advance, avoid following closely, and remain prepared in case of an emergency.
The likelihood that a driver may be involved in a staged crash will be reduced by putting these driver behaviors into practice.
To create safe following distances, vehicles should adhere to the New York Thruway Authority’s recommended three-second rule.
It is essential to have a distance of more than three seconds between your car and the car in front of you.
Drivers must increase their following time to five seconds in the event of bad weather and low visibility. By taking simple steps to reduce your driving distance from other cars, you can effectively prevent accidents, which are 40% more likely to be rear-end crashes.
Following an accident, you should take these precautions to guard against insurance fraud.
Following a car accident, you should take the precautions listed by the DMV to guard against insurance fraud.
Call the local police department to report any accidents, and then get in touch with your insurance company right away.
Take pictures of the damaged vehicles, get the driver’s license plates and insurance information of all involved parties, and document the accident scene.
It is crucial to avoid accepting assistance from unwanted tow firms and to decline to exchange money with the other driver.
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Be wary of anyone who appears to be shocked and gives surgical advice to specific doctors or legal counsel.
Before recording every detail of the occurrence, you should notify the DMV about the accident.
By taking these precautions, you may protect yourself from insurance fraud and safeguard your finances and legal rights.
Insurance clients suffer significant financial damages as a result of staged collisions, which all drivers are responsible for.
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Your insurance rates are being adversely affected by the hefty expenses resulting from fraudulently staged crashes.
The Insurance Information Institute claims that fictitious traffic accidents cause annual premium increases for New York auto insurance consumers of between $100 and $300.
Approximately 10% of all insurance payments in New York are said to be the result of fictitious car accident schemes. To assist drivers in lowering their costs, the DMV offers defensive driving classes that have been approved by the department.
Verified defensive driving courses provide two benefits: they increase driving skills while also reducing points and lowering insurance premiums by 10% a year for three years in a row.
The frequency of staged auto accidents in New York is on the rise, and each year, drivers and insurance companies lose millions of dollars.
Drivers that adhere to the DMV’s recommendations, which were developed to combat this problem, as well as defensive driving techniques and accurate collision scene recording, lessen their vulnerability to staged auto accidents.
You may lower your rates and protect your safety when driving by keeping up with advances and remaining informed.
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