A commenter made the observation that I was fortunate to have my car accident result in less severe financial implications. It turns out that there’s a typical insurance fraud using a car that accelerates from a halt and then abruptly applies the brakes. The term “sudden stop” or “brake check” scheme refers to this strategy.
Since this kind of fraud had occurred to me during the accident, I began looking into it more. The car in front of me abruptly applied the brakes hard after accelerating rapidly; she had the right-of-way at the intersection. Thankfully, I was motionless at a stop sign, just reaching 3 mph in the front, before slamming on my brakes and bumping into her car.
Perhaps It Was a Setup
Subsequently that night, a San Francisco-based reader contacted me, recounting an analogous incident that occurred just a month prior. What’s surprising is that their collision happened at the exact same intersection as mine: the three-way junction of Sloat Blvd, Skyline Blvd, and Lake Merced Blvd.
And when they pulled over at the same spot on Skyline Blvd, just before Zoo Road, the other driver was also a woman who didn’t speak English and could not produce car insurance or an ID. Conveniently, there just so happened to be a man on the side of the barren road who could translate for her. What are the chances?
That caused me to relive my own encounter in detail. The only other thing I recall is seeing people in a car coming from Lake Merced Blvd. observing and smiling, as if they knew it was a set-up, about 2:57 p.m. on a Thursday. I recall thinking how odd it was for such a little and unexpected accident to happen.
If you drive frequently, you may be setting yourself up for auto insurance fraud. If you don’t believe that fraudulent auto insurance affects you, reconsider. Every year, fraud loses billions of dollars, which raises premiums for everyone. I needed to look into this more!
A Case Study of Fraud in Auto Insurance
The first article I found about auto insurance fraud, courtesy of the California Department of Insurance, is below. Approximately 43% of California’s total vehicle-related insurance fraud occurs in Los Angeles. Zandra Monterrozo, 44, of Corona, entered a guilty plea and received a sentence on February 24, 2021, for her role in a well-organized ring that faked auto accidents in order to get approximately $135,000 in false insurance payouts. Owners of body shops were among the eleven other individuals who faced charges or prosecution.
In the end, the investigation revealed that Monterrozo was responsible for eight staged collisions involving innocent victims and two collusive ones, resulting in $137,832 in losses for victims and various insurers. She was also sentenced to one felony count of insurance fraud, ordered to pay $6,000 in restitution, and served one year of probation. As for her other possible accomplices, I’m not sure what happened to them.
The Brake Check Scam’s Operation
Here’s how scammers make money off the brake check plan in more detail, frequently with the assistance of a technician or clinic. The con artist claims small damage, like $1,000, after forcing a collision. They then hire a dubious mechanic who claims to have discovered damage worth an extra $8,000. The insurance company pays the mechanic $9,000, with the remaining $8,000 never being used for repairs.
Scammers may exaggerate their payment by claiming medical conditions like whiplash or back pain in addition to damages. Each passenger can submit a separate “injury” claim when there are several of them, possibly increasing their earnings. The thieves would prefer to operate out of a phony clinic in order to divide the insurance proceeds from fictitious medical procedures.
Threatening the victim is another approach to get money out of them. Following the mishap, the con artists might ask for money or goods, and the interpreter or witness might suddenly turn hostile. The brake check event may turn into a mugging if the scammer’s car sustains minor damage and they think the insurance company won’t reimburse them, or they may decide to end the matter.
Newly arriving undocumented immigrants who are more in need of money might also be recruited by scammers. They could pose as drivers using fictitious IDs or as passengers or witnesses. The seasoned con artists take over to manage the claim after the collision. But depending too much on unskilled people can backfire since a lack of skill or fear of conflict could make the setup fall flat.
Warning Signs of a Man-Made Accident
You should be aware of the following symptoms if you think you were in a staged collision:
- To boost the possible financial reward, the second automobile is packed with occupants.
- The motorist either doesn’t have insurance or has a new policy.
- Their car has a salvage title or is in bad shape.
- Although traffic was moving well, they came to an abrupt stop.
- Despite little damage, the driver and passengers all report injuries.
- A random group of witnesses coincidentally share the same background as the other driver.
Being prepared in advance of a startling incident is essential to maintaining composure and concentration. Make a list of what to do in the event of a car accident, such as calling 911, texting or calling a loved one, locating a tourniquet, locating a license, insurance, and registration, if you haven’t already. Since accidents are uncommon, you can find yourself at a loss for what to do at the moment. However, in a major collision, every second matters.
Watch a video depicting reckless driving behaviors, including checking the brakes, in action.
One typical critique I got from readers was that since I rear-ended the automobile, I was solely to blame for the accident. Even with the abrupt braking, I admitted that it might have been, and swapping my ID and insurance information wasn’t a problem. Insurance is meant to protect against unintentional losses.
I asked for the other driver’s ID and insurance, and some people thought that was inappropriate. Since you always follow protocol when interacting with the police during a traffic incident, I assumed that this was usual procedure. In the event of an accident, I would rather know who to deal with. I lessen my likelihood of falling for a fraud by verifying the name on the insurance card and my identification. However, the driver in this instance was also unable to appear.
Some said I was tailgating. I usually leave three or four feet between automobiles when I’m at a stop sign or red light, enough room for someone to stroll comfortably in between. Even at a standstill, it’s difficult to respond fast enough if a car accelerates unexpectedly and slams on the brakes. My lesson has been learned. Regardless of whether the cars behind me think I’m being unreasonable, I will now allow considerably more space just in case.
This kind of guilty-until-proven-innocent mentality is one of the reasons brake checking is such a successful trick in auto insurance fraud. Scammers are motivated to employ the brake check technique in order to profit from the fact that the driver in the rear is always held responsible, regardless of the situation.
Check out this video, which provides multiple examples to refute the claims made by people who maintain that the front driver is never at fault. Always remember there are two sides to every story before drawing judgments.
It Doesn’t Pay to Defraud Auto Insurance Companies
While I’m all for side gigs to supplement income, I don’t think vehicle insurance fraud is a worthwhile endeavor. Consider the instance of Zandra Monterrozo. Her bogus claims totaled $137,832, but it required eight staged incidents involving innocent parties and two collusive crashes for her to get there. Ten collisions to stage is a lot of work!
It takes a lot of time, and there’s a chance the insurance company won’t make the payout. You may lose money if they don’t at least pay for the damage to the car. Furthermore, it is improbable that false claims will always succeed, particularly given that insurance firms are skilled at identifying these frauds. Sharing the profits is another drawback of insurance fraud. Monterrozo was required to divide the $137,832 among eleven individuals. As a result, the average payout per individual drops to just $11,488. It’s difficult to see the ring leader taking home more than one-third of the total, even if some took more and some less.
Getting into an accident with the wrong victim is an additional drawback. What happens if the other person chooses to use a knife or gun in retaliation rather than remaining composed like I did? The victim may become very irate if they believe you are to blame for the mishap. It doesn’t seem worth taking that kind of risk.
And last, there’s the chance of being discovered. Monterrozo was given a comparatively low punishment, consisting of a year of probation and $6,000 in compensation. Given the lax penalties, it’s understandable why some con artists might be inclined to try their luck again.
