Beware of Car Crashes Staged for Insurance Scams, DMV Warns
New York Drivers Lose Hundreds of Dollars Each Year
New York drivers lose hundreds of dollars every year from staged car crashes designed to scam insurance companies, according to the DMV. They said that, in 2023, intentional accidents in New York jumped 34% since 2021, and 14% over 2022.
DMV Warns of “Crash for Cash” Scam
New York’s Department of Financial Services (DFS) also warns against the common “crash for cash” scam. They describe it as a packed car braking suddenly to force a rear-end crash. Co-conspirators, posing as doctors and lawyers, then file fake injury claims.
Statewide Statistics
The DMV said that 1,729 staged accidents statewide ranked New York second in the nation in 2023. They also cited an Insurance Information Institute statistic that bogus crashes cost car insurance policyholders anywhere from $100 to $300 per year in increased premiums in New York. They also said that rear-end collisions make up 40% of crashes, usually from following too closely.
Tips for Maintaining a Safe Following Distance
The New York Thruway Authority has tips for maintaining a safe following distance. They say to follow the three-second rule, keeping at least three seconds between you and the car ahead. As they pass a stationary object like an overpass, count the seconds until you pass that object. If you get there before three Mississippis, you’re too close. They said to make it a five-second rule when there’s low visibility or poor conditions.
Defensive Driving Techniques
The DMV recommended several other defensive driving techniques: not speeding, using directionals, and staying off your phone. If you’re in a crash, they said to take pictures of damage to any vehicles and get the other driver’s license plate and insurance information.
What to Do if You’re in a Crash
The DMV said not to exchange cash, accept help from unsolicited tow trucks, or go to a doctor or lawyer recommended by the other driver. Instead, they warned, report all crashes to local law enforcement, notify your insurance carrier, and file another report with the DMV. DFS also states plainly: “Pay only for services you have received.”
Benefits of Defensive Driving Courses
Taking a DMV-sanctioned defensive driving course refreshes driving skills, removes points from driver licenses, and cuts insurance premiums by 10% a year for three years.
Impact of Fraudulent Claims
An advocacy coalition newly formed in January 2025, Citizens for Affordable Rates, offers a related statistic. They estimated that fraudulent claims and trumped-up litigation from staged car crashes could account for up to 10% of total insurance payouts in New York.
Conclusion
The DMV and DFS are urging drivers to be aware of the increase in staged car crashes and to practice defensive driving techniques to avoid being victims of insurance fraud schemes. By following the tips and recommendations outlined above, drivers can reduce their risk of being involved in a staged crash and help keep insurance premiums low.
FAQs
- What is the “crash for cash” scam?
- How can I avoid being a victim of insurance fraud?
- What should I do if I’m in a crash?
A staged car crash where a packed car brakes suddenly to force a rear-end crash, and co-conspirators then file fake injury claims.
By practicing defensive driving techniques, such as anticipating other drivers’ actions, not tailgating, and being prepared to react quickly, and by being aware of the common “crash for cash” scam.
Report the crash to local law enforcement, notify your insurance carrier, and file a report with the DMV. Do not exchange cash, accept help from unsolicited tow trucks, or go to a doctor or lawyer recommended by the other driver.
