Expensive and dangerous threats to fleets

This article is part of a series sponsored by IAT Insurance Group.

Motor vehicle crashes result in $60 billion in employers a year, some of which are not actually “accidents.”

Automatic accident – Fraudulent actors intentionally coordinate collisions with commercial vehicles to earn claim expenses – an important and growing concern for the commercial transportation industry. These scams are not only expensive for fleet carriers, but also dangerous for everyone on the road. Fraudulent claims in violations can lead to increased insurance premiums, legal struggles and losses to the company’s reputation.

Organized crime rings often plan these scams to target commercial trucks because of their high insurance claims. They usually involve multiple participants, including fake witnesses, corrupt health care providers and immoral lawyers who exaggerate the claims of injury.

Understanding common types of phased accidents is crucial for fleet carriers and truck drivers to protect themselves.

Common types of car accidents

The following are five common stage accidents, and you need to pay attention to:

• Prone – The vehicle quickly cuts off in front of the truck and suddenly slams on the brakes, causing a rear end to crash. The scammer then claimed serious injuries, resulting in substantial insurance spending.
• Drive down – In this case, the fraudster waved the truck forward in the case of a merger or parking lot and then deliberately collided with the truck, later denied that they had sent a signal.
• Panic stops – The bad actor filled the vehicle with the passengers and pulled the truck before suddenly braking. Passenger all filed exaggerated claims of injury, increasing the cost of fraudulent claims.
• Side lobe – The scammer takes advantage of lane changes or tight spaces at intersections to ensure the truck is brushed on it. They later exaggerated the damage and harm.
• Fake witness settings – A witness suddenly appeared claiming to have seen the accident and blamed the truck driver. Often, these witnesses are accomplices in the scam.

How fleet operators protect themselves

The accidents that took place could cause serious financial and operational disruptions to the fleet carrier. Identifying red flags and taking the following proactive measures is crucial to mitigating risks.

1. Install the camera

Dash cameras and other recording equipment provide irrefutable evidence of what actually happened in the accident. Some scammers will intentionally dump it into a truck (sometimes called “prone”) to get the truck backwards. Without a camera, it is difficult to prove innocence. The camera exposes these frauds by clearly showing the order of events. In most cases, the videotape makes the fraudulent claim stop before starting.

2. Train driver discovers sign

Driver awareness is crucial to prevent accidents. Education of drivers about common scam strategies allows them to identify red flags before an accident occurs. Some warning signs include:

• Unstable or suspicious driving behavior
• The vehicle with multiple passengers appears to be ready to claim injury
• A bystander who conveniently seems to “witness” the accident, along with another driver
• The situation where the truck intentionally wedged makes movement difficult

Drivers are encouraged to believe in their intuition. If anything, it might be. Training programs should include real-life case studies and defensive driving techniques to help drivers mitigate risks.

3. Collect data on site

One of the hardest things a driver does after the accident is to stay calm and record everything. However, collecting data on site can make a difference in fraudulent claims. Key steps include:

• Multiple photos of the scene, vehicles, license plates and surrounding conditions
• Note any suspicious behavior by other drivers or witnesses
• Collect witness statements from impartial third parties
• Record damage (or lack of damage) with timestamped photos
• Record personal observations and details, and they are fresh

4. Work with law enforcement agencies

If the driver suspects fraud, they should immediately notify the response officer. Showing a dashboard lens on site can be a game-changer as it provides indisputable evidence to prevent false claims. Officers who acknowledge fraud can record it correctly, thereby strengthening their defense against scams.

5. Communicate with your insurance company

Quick communication with your insurance company is crucial. The fleet manager should provide all available evidence, including:

• Dashboard lens
• Driver statements
• Witness information
• Police report

Earlier insurance companies receive this information and they can start investigating potential fraud, reducing the cost of claims and taking liability the faster they can.

6. Files and Even Smaller Events

Not every accident that occurs involves significant damage. Sometimes, the liars were secondary to the accident during the stage and later claimed to be seriously injured. One common situation involved a minor back-end collision, and another driver appeared to be uninjured, but later filed a lawsuit claiming chronic back pain. Many states have two years of restrictions, which means fraudulent claims can occur long after an accident. Even recording the smallest events ensures that fleet carriers are prepared to deal with false claims when they appear.

7. Follow appropriate accident reporting agreements

Fleet carriers must have a standardized accident reporting agreement that follows each incident. Best practices include:

• Report all accidents now
• Record everything thoroughly
• Notify insurance and legal teams about potential fraud
• Long-term record and report retention

If fraud is suspected, remind insurance companies and investigators in advance to conduct a more thorough investigation and may stop fraud before obtaining fraudulent claims.

Consciousness and defense driving

By leveraging technology, train drivers to recognize scams and maintain thorough documentation, fleet operators can protect themselves from expensive plans. By staying alert and proactive, carriers will protect their business from the growing threat of staged accidents.

Ask for loss control representatives

Have questions about how to mitigate risks? e-mail losscontroldirect@iatinsurance.com Have a chance to see your question be answered in a future blog.

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