In my publish about illegal immigration, a commenter identified that I used to be fortunate to keep away from higher monetary penalties from my “automobile accident.” It seems that the maneuver the place a automobile accelerates from a cease after which instantly slams on the brakes is a standard insurance coverage rip-off. This tactic is called the “sudden cease” or “brake verify” scheme.
I began researching extra about such a fraud as a result of it had crossed my thoughts through the accident. Out of nowhere, after accelerating laborious, the automobile in entrance of me slammed on the brakes for no obvious purpose—she had the proper of method on the intersection. Fortunately, I used to be transferring slowly, barely reaching 3 mph towards the cease signal, earlier than slamming on my brakes and bumping into her automobile.
May Have Been A Setup
Later that night, a reader from San Francisco reached out, sharing an analogous expertise from simply the opposite month. What was exceptional was that it occurred on the similar intersection: the three-way junction of Sloat Blvd, Skyline Blvd, and Lake Merced Blvd.
And after they pulled over on the similar spot on Skyline Blvd, simply earlier than Zoo Highway, the opposite driver was additionally a girl who didn’t communicate English. Conveniently, there simply so occurred to be a person on the aspect of the highway who may translate for her. What are the probabilities?
That made me replay the main points of my very own encounter. It occurred at 2:57 pm on a Thursday, and the one different factor I remembered was seeing individuals in a automobile coming from Lake Merced Blvd who had been watching and laughing, as in the event that they knew it was a setup. How unusual, I keep in mind considering.
Had been we victims of a staged car collision? I’m unsure since no cash was extracted from me or my insurance coverage firm. Perhaps after they pulled over, they anticipated to see harm to her previous automobile. However on account of my reflexes, there wasn’t any, so they simply determined to let issues go.
Sadly for the reader, there was harm to the entrance particular person’s automobile. So she is within the strategy of coping with her insurance coverage firm now.
If you’re a frequent driver, beware that you could possibly be getting arrange for automobile insurance coverage fraud. Should you don’t suppose automobile insurance coverage fraud impacts you, suppose once more. Billions of {dollars} are misplaced to fraud annually, driving up premiums for everybody.
I needed to do extra analysis!
Case Examine on Automobile Insurance coverage Fraud
Beneath is the very first thing I discovered about automobile insurance coverage fraud from California’s Department of Insurance. Los Angeles, which accounts for almost 43 % of all auto-related insurance coverage fraud in California.
On February 24, 2021, Zandra Monterrozo, 44, of Corona, pleaded responsible and was sentenced for her involvement in an organized ring that staged car collisions to gather over $135,000 in fraudulent insurance coverage payouts. Eleven different suspects, which included physique store homeowners, had been additionally charged or prosecuted.
Record of 11 extra suspects:
- Bethuel Guevara Aguirre, 39
- Monica Elizabeth Sosa Alonzo, 39
- Baudilio Enrique Noguera, 49
- Juan Venancio Juarez Miranda, 49
- Carlos Enrique Lopez, 56
- Emma Amparo Lemus Martinez, 59
- Osmar Fernando Lopez, 40
- Alfonso Leon Baltazar, 51
- Mario Renee Alonzo, 67
- Marcos Farias, 70
- Walter Chacon, 31
Monterrozo was sentenced to 1 felony depend of insurance coverage fraud, ordered to pay $6,000 in restitution, and served one 12 months of probation. I am unsure what occurred to her different potential accomplices.
The rip-off entails one automobile deliberately braking shortly with out purpose, giving the driving force behind little time to react, inflicting a rear-end collision. The investigation revealed the ring was chargeable for eight staged collisions involving harmless victims, and two collusive ones, leading to $137,832 in losses for victims and varied insurers.
Sounds quite a bit like what each a reader and I skilled.
How the Brake Test Rip-off Works
Right here’s how scammers revenue from the brake verify scheme, usually with the assistance of a mechanic or clinic.
After forcing a collision, the scammer claims minor harm, like $1,000. They then enlist a shady mechanic who “finds” an extra $5,000 value of injury. The mechanic payments the insurance coverage firm $6,000, and so they break up the additional $5,000 that was by no means spent on repairs.
Along with damages, scammers might declare medical points like whiplash or again ache to inflate their payout. With a number of passengers, every particular person can file separate claims for “accidents,” doubtlessly incomes much more. Ideally, a fraudulent clinic is concerned, so the scammers can break up the insurance coverage funds from faux medical remedies as effectively.
One other solution to extract cash from the sufferer is thru intimidation. After the accident, the scammers might demand money or valuables, with the translator instantly turning into a threatening determine. If there’s little harm to the scammer’s automobile and so they imagine the insurance coverage firm gained’t pay out, the brake verify incident can escalate right into a mugging.
Pink Flags of a Staged Collision
Should you suspect you are a sufferer of a staged collision, look out for these indicators:
- The opposite automobile is stuffed with passengers to extend the potential quantity for monetary payout.
- The driving force has a brand new insurance coverage coverage or no insurance coverage coverage.
- Their car is in poor situation or has a salvage title.
- Site visitors was flowing easily, however they stopped instantly.
- The driving force and passengers all declare harm regardless of minimal harm.
- There are random witnesses who all occur to be of the identical background of the opposite driver.
Video of Brake Checking and Different Reckless Driving Conduct in Motion
One widespread criticism I obtained from readers is that the accident was solely my fault since I rear-ended the automobile. I acknowledged that it may have been, even with the sudden braking, and had no downside exchanging ID and insurance coverage data.
Some readers stated I used to be out of line for asking for the opposite driver’s ID and insurance coverage. My dangerous. I assumed it was customary protocol, since that’s what you do when coping with the police or any site visitors incident. I haven’t been in a automobile accident since faculty, and I favor understanding who I’m coping with after an accident.
Others blamed me for tailgating. I don’t learn about you, however after I’m at a cease signal or pink mild, I sometimes depart about three ft of house—sufficient for somebody to comfortably stroll between the vehicles. Tailgating doesn’t appear as related when the vehicles are stationary. If a automobile instantly accelerates and slams on the brakes, even from a standstill, it is laborious to react shortly sufficient.
One of these response is without doubt one of the causes automobile insurance coverage fraud by brake checking is such an efficient rip-off. If the driving force within the rear is all the time blamed, regardless of the circumstances, scammers are incentivized to make use of the brake verify scheme to money in.
For individuals who insist the entrance driver isn’t at fault, take a look at this video that reveals quite a few examples proving in any other case. Earlier than leaping to conclusions, keep in mind there are all the time two sides to each scenario.
Is Defrauding Auto Insurance coverage Firms Value It?
I am all for side hustles to make more money, however auto insurance coverage fraud would not appear to be a very good return on effort. Take the case of Zandra Monterrozo. She collected $137,832 in fraudulent claims, but it surely took eight staged collisions with harmless victims and two collusive crashes to get there. Staging 10 collisions is loads of work!
Not solely is it time-consuming, however there’s additionally the danger that the insurance coverage firm may not pay out. In the event that they don’t cowl a minimum of the car’s harm, you could possibly find yourself shedding cash. And it is unlikely that fraudulent claims have a 100% success charge, particularly when insurance coverage corporations are skilled at recognizing these scams.
One other draw back of insurance coverage fraud is having to share the earnings. Monterrozo needed to break up the $137,832 with 11 different individuals. That brings the common payout per particular person to only $11,488. Even when some took extra and others much less, it’s laborious to think about the ring chief strolling away with greater than half the full quantity.
One other draw back is moving into an accident with the unsuitable sufferer. What if the particular person would not keep calm like I did and as a substitute pulls out a knife or gun to retaliate? The sufferer may simply get pissed off as a result of they may suppose the accident was your fault. That’s a danger that doesn’t appear value taking.
Lastly, there’s the danger of getting caught. Monterrozo obtained a comparatively mild sentence—$6,000 in restitution and one 12 months of probation. With such lenient penalties, it is easy to see why some scammers may be tempted to attempt once more.
Let’s Have Compassion For The Victims Of Insurance coverage Fraud Too
Whereas it is tempting for fraudsters to use the system, it is not a sustainable or risk-free solution to make cash. For the common particular person, collaborating in an organized scheme like this isn’t definitely worth the authorized and monetary penalties.
I perceive that determined instances can result in determined measures. Empathy for perpetrators is a key precept for reformative justice advocates. If you’re poor or an unlawful immigrant with out many monetary choices, the temptation to partake in a automobile insurance coverage rip-off for a fast $500 is comprehensible.
Nonetheless, if we’re going to take a softer strategy to crime, we should additionally guarantee victims are compensated for the harm and struggling they endure too. Let’s not deal with criminals higher than law-abiding residents.
Advice For Drivers To Shield Themselves Towards Automobile Insurance coverage Fraud
Now that you simply’re conscious of the brake verify scheme and different staged collisions used to rip-off insurance coverage corporations, listed here are some steps to guard your self:
- Set up a entrance and rear-facing digicam that constantly information whilst you drive. This gives essential video proof in case you’re concerned in a staged collision. One suggestion my shut buddy makes use of is the Pulse P12 Pro 4K Mirror Dash Cam. It prices about $200-$300 to put in.
- Drive a modest however secure automobile. Stagers usually goal high-value automobiles like industrial vans, luxurious vehicles, or government-owned automobiles, as these are nearly assured to have insurance coverage protection. Automobile insurance coverage fraud is one more reason why training Stealth Wealth is necessary. You change into much less of a goal.
- At all times insist on a police report on the scene of the accident, and ask the officer to positively establish all events concerned.
- Completely doc the accident. Use your mobile phone to take photographs or movies of the collision, together with any harm to the automobiles.
- Report the suspicious collision to your state’s Division of Insurance coverage. They could have worthwhile data and assets to help you.
- Take into account getting tinted home windows. Relying on the place you reside, you might be legally allowed to tint your home windows as much as a sure restrict. Take into account going to that restrict. The darker your tint, the more durable it’s for others to see. This creates extra danger for fraudsters to choose on you.
- Get the proper insurance coverage insurance policies. Along with reviewing your auto insurance coverage coverage, it’s value contemplating an umbrella policy for added legal responsibility safety. Converse along with your insurance coverage supplier not solely about automobile insurance coverage but additionally about scams just like the brake verify scheme. Ask for his or her suggestions on the suitable protection quantities for every sort of insurance coverage to make sure you’re totally protected.
No one Actually Cares, So You Should Be Vigilant
Accidents occur on a regular basis. Even in the event you’re the sufferer of fraud, individuals will nonetheless discover a solution to blame you, usually displaying little sympathy to your scenario. And in the event you admit the accident was solely your fault, individuals will leap on the probability to tear you aside and take full benefit.
It’s a troublesome world on the market, of us. Shield your self and keep secure!
Reader Questions
Have you ever ever been a sufferer of automobile insurance coverage fraud or some other sort of insurance coverage fraud? If that’s the case, how did it occur, and the way a lot did the perpetrators get away with? Should you work within the auto insurance coverage business, I’d love to listen to your insights on automobile insurance coverage fraud. What’s the denial charge, and the way usually do insurance coverage corporations detect fraudulent claims?
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