Car insurance scams by individual policy holders against their insurance provider have been around since insurance was invented but over the years insurance providers have gotten better at recognizing scams and catching the perpetrators. According to insurance fraud experts, insurance scams are the second highest financial crime in the United States. Additionally, more than 20 percent of personal injury claims and 10 percent of car wreck claims are from bogus or staged accidents.
Most people dread getting into a car accident; dealing with a wrecked car, haggling with your insurance company and personal injuries are no fun. The scary thing is that some car accidents are actually planned in order to pull off a car insurance scam. Innocent drivers end up paying the price both in higher premiums of $200-$300 per year, blemished driving records, personal injuries, and the hassles of repairing or replacing their car.