Insurance Terms Defined – What is a Staged Collision?

We’ve talked quite a bit about fraud here on the blog when it comes to auto insurance (check out our posts here). One common term that comes up in relation to fraud and insurance is staged collision. Let’s look at some more specifics.

Staged collision defined

A staged collision (sometimes also referred to as a caused collision) is a collision that is set up by a driver(s) on purpose. The fraudster intentionally causes an accident and then places the blame on the other driver, making it look as though the other driver was the reason for the collision.

There are different ways this type of scam are executed, often revolving around a driver offering right of way or waving someone through. Be very cautious in these scenarios.

The Insurance Bureau of Canada has more information about 3 types of staged collision here.

Why would someone stage a collision?

Fraudsters may try to benefit either from a completely false claim, or an inflated claim (such as claiming more damage than there actually is). Often a scammer will be working with other service providers that could potentially benefit from the collision, such as a car mechanic or repair shop, a lawyer or a healthcare provider. Be extremely wary if you are involved in an accident and the other driver offers to referrals to a specific provider or business. And make sure to let your auto insurance company or broker know the details of what transpired.

Be sure to check out this resource from the Financial Services Regulatory Authority of Ontario (FSRA) regarding auto insurance fraud prevention and reporting.

You can also check out our posts from the archives:

Have some other insurance jargon on your radar that you’d like clarified? Check out our blog posts defining common terms and peruse our full glossary of insurance terms here.

Have questions about fraud and auto insurance? Want to learn more about getting the best coverage for you in Ontario? Reach out to one of the insurance specialists and our team. Or click here to get an auto insurance quote online.