NAMIC urges DOJ for task force on staged car crash fraud

The National Association of Mutual Insurance Companies (NAMIC) has joined forces with members of Congress to urge the Department of Justice to establish a task force focused on investigating and prosecuting staged car crashes for insurance fraud. NAMIC President and CEO Neil Alldredge addressed Attorney General Pam Bondi in a letter, highlighting the growing issue of intentional and coordinated schemes designed to exploit insurance systems.

Alldredge noted that over 7 million crashes occur annually on U.S. roads, with an increasing number being deliberate actions by fraudsters linked to organized crime. He stated, "Staged vehicle accidents are rising at an alarming rate, increasing risks and costs for all honest road users and our members who provide the financial security that helps rebuild lives and businesses in the wake of a crash."

These fraudulent activities typically involve recruiters who find fake "victims" willing to cause crashes intentionally. Claims are then filed against the other driver's insurer, often involving dishonest medical providers and attorneys who falsely attest to unnecessary or nonexistent treatments.

Alldredge emphasized the widespread impact on American motorists: "Every day, hundreds of millions of innocent American motorists are exposed to increased risks because of these staged accident scams, whether they know it or not."

In addition to calling for a federal task force, Alldredge expressed NAMIC's support for H.R. 2662, known as the Staged Accident Fraud Prevention Act. This legislation aims to make staging motor vehicle collisions with commercial vehicles a federal crime with significant penalties, particularly when such incidents result in serious injury or death. Alldredge conveyed optimism about Congressional action on this matter: "We are hopeful Congress will move forward with this important legislation."