Recently, the Insurance Bureau of Canada alerted insurers to an increase in fraudulent claims from staged collisions – car accidents that are deliberately set up to cash in on payouts from insurance claims. To make the collisions appear more authentic, fraudsters are also involving innocent drivers.

The most common tactics that authorities have identified are:

• Target and bullet: staged collisions in which an unsuspecting car is intentionally hit.
  
  
• Swoop and squat: a driver slams on their brakes to get an innocent driver to rear-end the vehicle. In some cases, two vehicles are involved in the fraud, causing an innocent third party to rear-end the second vehicle.
  
  
• Drive-down or Wave-in: a driver exiting a parking lot is “waved in” by a driver on the roadway. The roadway driver accelerates into the merging car once they enter the roadway, intentionally hitting the innocent driver and causing a collision where the innocent driver appears to be at fault.

In these types of collision, the organizers pay their pre-arranged crash victims, tow truck drivers, witnesses and questionable medical clinics to falsify records in order to profit from insurance payouts.

Because higher payouts lead to higher premiums for all policyholders, everyone is affected by auto insurance fraud. 

Foil fraud from behind the wheel

How do you avoid becoming involved in a fraudulent accident? Stay alert. Be aware of cars following too closely, suddenly cutting you off, or cars occupied by three or more adults that wave you in. If you’re worried about the actions of drivers around you, find a safe parking spot and pull over or wait to enter traffic when you feel it is safer. 

Protect yourself at the scene of an accident

If you are involved in a collision, there are a few things you can do to protect yourself from fraud.

1. Once you gather the other driver’s information, take pictures of the scene, including the damage to all vehicles involved.
   
   
2. Count how many people are in the other vehicle(s). Take note of ages and genders, and even obtain names and contact information.
   
   
3. Collect witness names and contact information.
   
   
4. Call the police to the scene, file a police report, and keep a copy. Do not take further direction from anyone other than a police officer.
   
   
5. Be wary if you are pressured or offered money by a tow truck operator to go to a particular body shop, paralegal or medical professional. Ask your insurer for a list of preferred auto shops.
   
   
6. Make sure all bills are detailed and accurate, medical treatments offered are necessary, and always read forms thoroughly before signing them.
   
   
7. If you have concerns about how the accident occurred, contact your insurer immediately.

 Help stop insurance crime

Too often, insurance crime is tolerated because it is seen as “victimless” – but it affects everyone with insurance in the form of higher premiums. If you suspect an incident of fraud, submit a confidential report by calling 1-877-IBC-TIPS or visiting the Insurance Bureau of Canada online. Be sure to also visit their list of the latest fraud alerts.