Beware of car crashes staged for insurance scams, DMV warns

ALBANY, N.Y. (NEXSTAR) — New York drivers lose hundreds of dollars every year from staged car crashes designed to scam insurance companies, according to the DMV. They said that, in 2023, intentional accidents in New York jumped 34% since 2021, and 14% over 2022.

On Thursday, DMV officials sent out a warning about the increase in staged crashes, and told drivers to practice defensive driving to stay clear of insurance fraud schemes. Commissioner Mark Schroeder said, "By practicing defensive-driving habits, such as anticipating other drivers’ actions, not tailgating, and being prepared to react quickly, New Yorkers can avoid being victims of fraud.”

New York's Department of Financial Services (DFS) also warns against the common "crash for cash" scam. They describe it as a packed car braking suddenly to force a rear-end crash. Co-conspirators, posing as doctors and lawyers, then file fake injury claims.

The DMV said that 1,729 staged accidents statewide ranked New York second in the nation in 2023. They also cited an Insurance Information Institute statistic that bogus crashes cost car insurance policyholders anywhere from $100 to $300 per year in increased premiums in New York. They also said that rear-end collisions make up 40% of crashes, usually from following too closely.

The New York Thruway Authority has tips for maintaining a safe following distance. They say to follow the three-second rule, keeping at least three seconds between you and the car ahead. As they pass a stationary object like an overpass, count the seconds until you pass that object. If you get there before three Mississippis, you're too close. They said to make it a five-second rule when there's low visibility or poor conditions.

The DMV recommended several other defensive driving techniques: not speeding, using directionals, and staying off your phone. If you're in a crash, they said to take pictures of damage to any vehicles and get the other driver's license plate and insurance information.

The DMV said not to exchange cash, accept help from unsolicited tow trucks, or go to a doctor or lawyer recommended by the other driver. Instead, they warned, report all crashes to local law enforcement, notify your insurance carrier, and file another report with the DMV. DFS also states plainly: "Pay only for services you have received."

Taking a DMV-sanctioned defensive driving course refreshes driving skills, removes points from driver licenses, and cuts insurance premiums by 10% a year for three years.

An advocacy coalition newly formed in January 2025, Citizens for Affordable Rates, offers a related statistic. They estimated that fraudulent claims and trumped-up litigation from staged car crashes could account for up to 10% of total insurance payouts in New York.