What happened: NYPD is investigating a staged accident that is part of a rising trend of insurance fraud schemes, where scammers cause intentional crashes to collect insurance payouts.
Remind me: While this trend isn’t new, it is becoming increasingly common in high-traffic areas. Remember this made-for-TV drama out of Louisiana?
- These fraud schemes cost insurers billions annually and raise premiums for all drivers.
By the Numbers: The rise is particularly significant in cities like New York, which experienced a 14% increase in staged accidents from 2022 to 2023.
- Fraud schemes cost insurers around $20 billion annually.
TLR Thoughts: These scams highlight how easy it is for dishonest individuals to exploit the legal system for financial gain, whether by staging accidents or using misleading trial tactics. From inflating medical bills to distracting juries with irrelevant information, personal injury trial lawyers have perfected the tactics that have created this lawsuit crisis in Texas.
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