DMV Says Staged Crashes, Form of Insurance Fraud, are Rising in NY State

www.whec.com, Evan Bourtis, January 30, 2025

ROCHESTER, N.Y. — The NYS Department of Motor Vehicles is warning drivers about a rise in staged crashes, when scammers intentionally cause a crash to collect on fraudulent insurance claims.

According to the Insurance Information Institute, staged crashes can raise the average auto insurance premium by about $100 to $300 per year. A report found that New York had the second-highest number of staged crashes of any state in 2023.

The state’s Department of Financial Services says one example is when a car abruptly brakes intentionally, causing a rear-end crash. After the crash, doctors or lawyers involved in the scheme will “handle” medical claims and lawsuits. The department has information on reporting insurance fraud here. Continue Article