Quick Breakdown
- Commercial fleet vehicles are targets of staged accidents in hopes of big payouts.
- After a false claim, it’s important to act fast, document everything, and file a fraud report.
- Dash cam footage and GPS tracking are your strongest defense.
Most people get into a fender bender and are just happy that everyone is okay. Others see dollar signs and an opportunity to profit. Scammers target commercial vehicles, knowing that claims against them often lead to higher payouts. But insurance fraud is a crime in nearly every state, and you don’t need to be a sitting duck.
If one of your drivers is hit with a false accident claim, we’ll walk you through exactly what you can do to fight it and how technology like video telematics can be the difference between winning and losing.
After a false accident happens, you should:
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Call the police
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Talk to your driver about the incident
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Get the footage ASAP
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Pull relevant GPS data
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Send evidence to your insurance
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Report the incident to state and federal fraud hotlines
What is a staged accident?
A staged accident is when someone intentionally causes a car accident to file and collect on a fraudulent insurance claim. Recently, this issue has drawn more attention, with the Staged Accident Fraud Prevention Act, introduced in Florida, that would make staging false accidents a federal crime.
Scammers target service vehicles because they know they’re insured for a guaranteed payout if they play their cards right. False accident claims are typically preplanned and well thought out, so unless businesses have footage or GPS data to back up their account, it can be difficult to combat the scammer’s claims.
False accident claims are a major fleet management challenge because for smaller businesses with slimmer margins, a false claim can significantly impact their finances. With a slowing U.S. economy, scams like this are on the rise as people look to make a quick buck.
Types of false accident scams
Most small businesses won’t even know about a false claim until they receive notice from their insurance. Sometimes staged accidents are obvious from the get-go, but a scammer might also exaggerate their claim later after acting normal following an accident. These scams depend on businesses that are unprepared and undereducated about the risk. Get familiar with common false accident scams and hold trainings with your drivers so they can spot insurance claims and stay vigilant on the road:
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Exaggerated accidents occur when there was a real accident — the scammer just reports that it was more severe for a bigger payout.
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Staged accidents typically involve multiple cars working together to create a situation where a minor collision is unavoidable. For example, the scammer might wave you on to turn, then speed up so it looks like you hit them carelessly.
Common staged accident patterns targeting service fleets
There are several common types of staged accidents that your drivers should be aware of. There’s no way to guarantee they can avoid a staged accident, but identifying a scam as soon as possible is key to fighting it:
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Backing into a stopped vehicle at a light
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Claiming to be hit as a pedestrian near a worksite
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Cutting off a service truck, then suddenly braking to cause a rear collision
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Sideswiping a driver in traffic, then claiming to have been forced off the road
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Signaling for a driver to go on, then driving into them and claiming they had the right of way
Sometimes, scammers will work together to corroborate their false claims. In these situations, you’ll need hard proof like dash cam footage to back up your driver’s story and avoid being found at fault.
What to do after a false accident claim
If one of your drivers is involved in a staged auto accident, it’s important to act fast — you can be sure the scammer won’t waste any time trying to get their payout. Here’s what to do to stay on top of the situation and protect your business:
1. Contact local authorities
The first thing to do after any auto accident is to contact the police so they can dispatch officers and send medical help if needed. A police report documents the events and makes the insurance claim process much smoother, so don’t skip this even if the damage looks minor.
2. Talk to your driver before anyone else does
Next, talk to your driver. Ask them for their account of the incident and record the conversation to make sure you preserve all the important details while they’re fresh.
Ask specific questions about what happened leading up to the accident and see if they can remember anything notable about the other driver’s behavior before or after the accident.
3. Get the footage immediately
As soon as you’re aware of the incident, get as much footage as you can of it. The longer you wait, the more time you’ll waste sifting through excess video to find the right clip. If there’s no dash cam installed, contact local businesses that might have caught the incident on their security cameras.
4. Pull the GPS data for that vehicle
Next, pull data from the GPS vehicle tracking system to pinpoint the exact time and location of the incident. You can also use this data to prove the vehicle’s speed leading up to the incident, which is especially helpful after a staged accident to show that your driver acted accordingly.
5. Contact your insurance carrier with what you have
Get ahead of any false claims and contact your fleet insurance as soon as you’ve completed the above steps. It’s always better to be proactive rather than waiting for your provider to call you, so you can contest the claim from the start. Send everything you have, such as footage, GPS data, and photos, to speed up the process.
6. Report the incident
Once you’ve submitted everything to insurance, you should also report the fraud incident. Contact local authorities, your state’s insurance fraud hotline, and fill out a report with the National Insurance Crime Bureau. This will help authorities take the appropriate steps to investigate the incident.
How can footage change the outcome after a false accident claim?
Dash cam footage is invaluable if your business is hit with a false accident claim — it’s the difference between hoping you can convince an investigator that you’re trustworthy and having hard proof to back you up.
Think about this example: one of your drivers is at a red light when the car in front of them suddenly backs up. Later, you’re informed there’s been a claim that your driver rear-ended the car in question.
Without footage, it’s your driver’s word against the scammer’s, and odds are, your driver will be found at fault. However, if you have a dash cam, the footage can show that your driver didn’t do anything wrong, and help get the claim dropped.
Even if your driver was at fault for an incident, dash cam footage can protect them from exaggerated claims. Maybe a driver misjudged another car’s speed and had a minor fender bender. But suddenly, the other party is claiming that their car has massive damage. You can use footage to show that your driver might be responsible for some scratches, but not for a more serious and costly repair, like a complete door replacement.
What if you don't have dash cam footage?
If you don’t have access to dash cam footage, there are still other sources of proof you can use to exonerate your driver. GPS data, witness accounts, and photographs of the incident can all help prove your driver’s case.
If the claim is serious, you can even work with an accident reconstructionist to support your case. These professionals use forensic evidence, physics, black box data, and even environmental conditions to show how accidents happened.
The less evidence you have, the harder it will be to defend your drivers in court if they become victims of a staged vehicle accident. Take this as your sign to invest in dash cams that can help keep your drivers safe.
How to set up your fleet so the next incident goes differently
No offense in the world can measure up to a solid defense. Here’s what you can do now to protect your business from insurance fraud:
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Hold training for drivers on your fleet safety policy and what to do in the first 10 minutes after an accident
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Install dash cams on every vehicle and make sure they’re set up for continuous recording
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Learn how to find and pull footage quickly
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Set up GPS tracking that saves data automatically, sorting it by date and vehicle
Don’t wait until it’s too late to protect your business from a false accident claim. Get a demo to see how Linxup has your back when insurance scammers strike.
FAQs
Is dash cam footage admissible in court?
Yes, dash cam footage is admissible in court. However, you must be able to prove the authenticity of the footage, and it needs to show the incident you’re disputing clearly. If the other party claims your footage was tampered with, you must prove its authenticity, which can be proven with help from a forensic analyst.
Do I have to tell my drivers that dash cams are recording?
Yes, you need to tell drivers when there’s a recording device in their vehicle. This is a legal requirement in most states, and it’s the right thing to do to protect their privacy.
What should my driver never say at the scene of an accident?
There are a few things drivers should avoid saying after an accident. It may seem rude, but these types of statements can be interpreted as taking responsibility for the incident:
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Don’t apologize: Saying you’re sorry — even in the heat of the moment — can be interpreted as taking responsibility for the accident. In some cases, this will put you at fault.
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Don’t discuss potential injuries: Even a minor incident can be stressful and cause an adrenaline rush. This could mask more severe injuries or pain. If a driver says they feel fine at the scene of the incident and then realizes they have an injury once the adrenaline rush wears off, their knee-jerk “I’m okay” can prevent their injury from being covered.
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Don’t guess what caused the accident: Avoid statements like “I didn’t see you,” or “You came out of nowhere.” These statements assign blame, and that’s for investigators to decide.