Consider this scenario: You’re stuck in heavy traffic on a busy highway. Another car cuts off the driver in front of you, forcing him to slam on the brakes. You try to stop, but there’s no time...and you rear-end the guy in front of you. An everyday accident? Not this time. Turns out you’ve been had by a well-organized criminal ring that staged the entire thing. This particular scam is called the 'swoop and squat.'
The first car 'swoops' in while the second car 'squats' in front of you. After the 'accident,' The co-conspirators participating in the scam get out of their car and survey the damage to the rear end. They optimistically estimate the damage to not amount to much, and report that they did not suffer any injuries in the accident. As long as you do not report being seriously injured, the perpetrators suggest leaving police and insurance companies out of the accident and handling the situation themselves, pointing out the potential cost to both parties' insurance premiums. You exchange contact information and they say they will get an estimate for the cost of repairing their back bumper.
But a few days down the road, the story begins to change. Rather than an estimate from a body shop saying the repair will be inexpensive, the attorney representing the perpetrating driver contacts you and tells you the damage was much more substantial than previously thought. On top of this, everyone in the car you rear-ended (usually crammed full of passengers) typically file bogus injury claims with your insurance company. Each will complain of whiplash or other soft-tissue injuries; things difficult for doctors to confirm. They may even go to crooked physical therapists, chiropractors, lawyers, or auto repair technicians to further exaggerate their claims.
The trouble is, since there were no eyewitnesses and no police report, you are definitely facing a challenging situation. After all, the other driver already got his insurance involved, and he has already gotten medical care as a result of the accident.
We're Talking Big Money Here
Staged accidents cost the insurance industry about $20 BILLION a year. Those losses get passed on to all of us in the form of higher insurance rates at an average of $100-$300 extra per car per year. How Can You Protect Yourself?
• If you're in an accident, call the police immediately.
• Report accident claims to your insurance company. Don't settle on site with cash.
• Be careful with your personal information, mindful of identity theft.
• If you can, photograph the car and passengers and write down names, addresses, and phone numbers.
• Use medical, car repair, and legal professionals you know and trust.
• Always keep a safe following distance between yourself and the car in front of you.
