Personal injury protection (PIP) – often known as no-fault insurance – provides coverage for medical and non-medical expenses associated with car accidents.
This type of auto insurance is intended to protect and support drivers after a collision. But criminals are using busy roadways as an opportunity to fake collisions and cash in on fraudulent auto accident claims.
If you’re a victim of personal injury car accident insurance fraud, it can be difficult to make a case for your innocence.
To avoid becoming a victim of personal injury insurance fraud in Kansas and Missouri, look out for these signs of staged auto accidents – and find out what to do if you get scammed.
What is personal injury insurance fraud?
Before we look at how to avoid car accident fraud, it’s useful to explain precisely what we’re talking about.
Car accident personal injury insurance fraud involves making a claim on insurance when no genuine auto collision has taken place.
Sometimes this means staging a car crash that never actually took place. But it can also involve criminals deliberately causing an accident and blaming it on an innocent driver – in this case, that’s you.
Either way, criminals use car accident fraud to make an insurance claim and benefit from a large payout.
When these accidents occur, they can cause serious physical harm or even death. And even if nobody is injured, the incident can be traumatizing for the victim.
If you’re involved in an insurance fraud car accident, it can also lead to a large increase in your annual insurance premiums.
Types of car accident fraud
There are 3 main types of cash-for-crash auto insurance scams: staged accidents, ghost accidents, and induced accidents.
Staged accidents
People often refer to any fraudulent accident as a staged car crash. But the term specifically applies when two fraudsters deliberately crash into one another to create grounds for an auto insurance claim.
Ghost accidents
In this scam, no actual accident or damage occurs. Instead, the criminals simply fabricate an accident on paper.
Induced accidents
This is the most serious type of insurance fraud car accident scam that innocent drivers need to be aware of.
In induced accidents, criminals target an innocent motorist to make them seem like the at-fault driver in an auto collision.
They often do this by:
- Driving in front of your vehicle, then suddenly slamming on the brakes
- Flashing their headlights or waving you out of a junction, only to drive into you once you start moving
- Waiting for you to get behind them and then quickly reversing
- Overtaking you, suddenly swerving in front of you, then braking hard
These fraudsters often work in gangs to stage these accidents more easily and provide evidence in their favor as witnesses.
Common insurance fraud car accident scenarios
Left turn drive down
You’re driving down a 4-lane road, preparing to make a left turn.
As you stop to make the turn, a driver in the oncoming lane slows down and invites you to cross.
When you turn, the stopped driver quickly moves forward to block you. Another car, part of the same gang, then slams into your vehicle.
The car that blocked your way drives off, making it look like you were at fault for crossing into oncoming traffic.
Right turn drive down
You pull up to an intersection intending to turn right.
As you start moving, another car rams into the back-left side of your vehicle.
The driver and passengers of the colliding vehicle claim you pulled into traffic when it wasn’t safe.
Curb drive down
You prepare to pull away from a curb and merge into traffic when the lane is clear.
Suddenly, a car crosses from the left lane and deliberately crashes into you.
Again, that driver and their passengers claim you’re at fault for pulling into traffic.
Swoop and squat
These staged crashes typically involve 3 vehicles: two driven by criminals and the third by an innocent victim.
They’re performed differently depending on the type of road you’re driving on.
On a city street
The ‘squat’ vehicle pulls in front of your car.
The ‘swoop’ vehicle then pulls in front of the squat car.
The squat car hits their brakes, intending for you to drive into the back of them.
The swoop car drives off, making it seem like you’re at fault for the collision.
On a freeway or expressway
This is similar to swoop-and-squat scams on a city street, but involves one more criminal vehicle.
The third criminal boxes you in to ensure you can’t change lanes when the swoop vehicle cuts off the squat car.
After the crash, both the swoop and box-in cars drive away.
What to look out for to avoid auto insurance fraudsters
- Be suspicious if the other drive seems very calm after the collision, especially if they already have their details written down. This suggests that they were expecting a crash and want to get away as quickly as possible
- Look out for exaggerated claims. If after a minor collision your insurance company mentions claims for high repair costs, vehicle recovery, serious injuries such as whiplash, or injuries to other passengers when the driver was alone, the incident could be fraudulent
- Keep an eye on the behaviour of people in the car you’re following. If they’re constantly looking back or paying extra attention to your vehicle, they might be planning the best time to brake hard and cause an accident
- Be cautious of any drivers that frequently change speeds, such as driving extremely slowly and then suddenly speeding up
- If another driver flashes their headlights or invites you to cross their lane of traffic, don’t assume it’s safe. Look out for other potential hazards and be prepared to brake, especially if you don’t have right of way
How to avoid becoming a victim of car accident insurance fraud
- Auto insurance fraudsters often target new, rental, or commercial vehicles, since they tend to be well insured. If you’re driving one of these vehicles, be extra careful
- Know that criminals also tend to target victims who they believe won’t be as difficult to deal with. This can include elderly drivers, lone females, and mothers with children
- Obey road laws and develop good driving habits, such as following the speed limit and knowing who has right of way
- Don’t follow other vehicles too closely. Leave plenty of room so you can perform an emergency stop if necessary
- Think ahead and try to anticipate the actions of other drivers. Even if everything looks safe, always assume that something could go wrong
- Don’t get too close to any vehicle that seems to have stopped in the road for no reason
- Install a dash cam to capture evidence of any collisions that occur. Oftentimes, this is the most valuable evidence in any personal injury auto insurance claim
- Look out for ‘runners’ and ‘cappers’ – people who appear at the scene of an accident to recommend services like doctors and attorneys. Tow trucks that appear when you haven’t called for services are often cappers for auto repair shops
- If you’re in an accident, calling the police is always the right thing to do
- Take plenty of photos showing the location, weather conditions, and damage to each vehicle
- Ask for the contact details of any eye witnesses (though be aware that anyone could be complicit as part of a fraud gang)
- Get as much information as possible about the vehicle and number of passengers, and note the precise time and date of the collision
- Even if you suspect the accident was staged, always comply with your legal responsibilities such as sharing your insurance details
- At the scene of the crash, never admit liability for anything, and never agree to settle the matter informally
- Following the accident, inform your insurance company as soon as you can
- If you suspect a scam, don’t challenge the other driver in the moment. Instead, contact the National Insurance Crime Bureau (NICB) on 800-835-6422, or report it online
What to do if you’re the victim of auto insurance fraud
If you’re the victim of an insurance fraud car accident, the incident needs to be reported.
First, alert the NICB using the details given above. Then contact the Kansas Department of Insurance Anti-Fraud Division or the Missouri Department of Insurance, depending on the state in which the collision occurred.
You should also let your insurance company know that you suspect the car accident was staged.
Lastly, it’s important that you speak with the experienced local personal injury attorneys at Phalen Law. We can help you dispute a false insurance claim, especially if you’ve followed our advice for protecting yourself against car accident fraud.
Keep Reading: Legal Steps to Take After You’ve Been in a Car Accident
Protect yourself and win compensation with Phalen Law
Our expert team has over 50 years’ experience handling auto insurance claims of all kinds throughout Kansas and Missouri. We can spot the signs of a staged accident and build a strong case for your innocence.
With our support, you can avoid paying out of pocket for damage and injuries, and prevent an increase to your annual auto insurance premiums.
We can also represent you in suing the responsible party for a fraudulent insurance claim. That way, you can receive damages for any financial losses such as vehicle damage, time off work, medical expenses, and legal fees.
You could also recover non-economic damages for emotional distress and mental suffering, and even punitive damages awarded to punish the perpetrator for their actions.
Call us today toll free or fill out our Free Case Evaluation form online to give us the details of your case, and we’ll help protect you from personal injury auto insurance fraud.

William L. Phalen
For 30 years, Bill Phalen has been representing families and workers whose lives have been devastated by workplace injuries, reckless drivers and the negligence of others. When tragedy needlessly strikes – because of the irresponsible behavior of an employer, corporation or an insurance company – Bill Phalen is an advocate for the people, always representing David in the fight against Goliath. Bill’s strong convictions have led to successful cases at the Court of Appeals and Kansas Supreme Court.