NAMIC Joins Call for Federal Insurance Fraud Task Force

The National Association of Mutual Insurance Companies is joining with members of Congress urging the Department of Justice to form a task force dedicated to investigating and prosecuting staged car crashes for insurance fraud.

There are more than 7 million crashes on U.S. roads annually, NAMIC president CEO Neil Alldredge said in a letter to Attorney General Pam Bondi. “Unfortunately, more and more frequently, these crashes are not mere accidents, but the result of intentional, strategic, and coordinated schemes designed to unjustly enrich fraudsters with ties to organized crime,” he added. “Staged vehicle accidents are rising at an alarming rate, increasing risks and costs for all honest road users and our members who provide the financial security that helps rebuild lives and businesses in the wake of a crash.”

Staged crash schemes often begin with recruiters who seek out fake “victims” who will deliberately cause a crash and then file claims against the other driver’s insurer. Unscrupulous medical providers and attorneys are brought into the scheme to attest to treatment that may not have been needed or was never actually provided.

“Every day, hundreds of millions of innocent American motorists are exposed to increased risks because of these staged accident scams, whether they know it or not,” Alldredge said in the letter.

To further combat fraud, Alldredge voiced NAMIC’s support for H.R. 2662, the Staged Accident Fraud Prevention Act, which would make staging motor vehicle collisions with commercial motor vehicles a federal crime with meaningful penalties, especially when the staged crash results in serious bodily injury or death. “We are hopeful Congress will move forward with this important legislation,” he said.