DMV says staged crashes, form of insurance fraud, are rising in NY State

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.

DMV says the best way to protect yourself is by being prepared in case a nearby driver makes an error, such as failing to stop or yield at a sign. Drivers should also stay a reasonable distance from the car ahead of them, in case of an abrupt stop.