Staged auto accidents are one of the major contributing factors on why auto insurance premiums throughout the industry are increasing very rapidly.
According to the Federal Bureau of Investigation, 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 to $300 extra per automobile, per year.
Twenty Six People Charged in Insurance Fraud Ring
Authorities have filed charges against 26 individuals who were allegedly involved in an insurance fraud ring that staged fake car accidents and duped at least 12 insurance companies out of more than $100,000 in payouts.
Georgia Insurance Commissioner, Ralph Hudgens, announced the arrest order for Devonta Waddy, of Lumpkin, who was identified as the ring leader of the fraud group, and 25 others who were collectively charged with 326 offenses. Waddy remains at large as of press time.
State authorities have pressed charges of insurance fraud, racketeering, and theft by deception, identity fraud and exploitation of the elderly against the group.
The Ledger-Enquirer reports that the insurance companies that have been scammed by the alleged fraudsters include GEICO, State Farm, Nationwide, SafeAuto, Allstate, Progressive, USAA, Georgia Farm Bureau Mutual, Safeway, Everest National, Direct Auto and The General Insurance.
Read full articlehere from Insurance Business America.
Automobile insurance premiums, industry wide, are
increasing rapidly which impacts operating results.