The New York State Department of Motor Vehicles is cautioning New York drivers to be aware of a rise in staged crashes and car insurance fraud. The DMV is also reminding drivers that the best way to avoid falling victim to these scams is to drive defensively.

“When someone intentionally causes a crash to collect insurance money, it's called a staged crash or ‘crash for cash,’ which is a form of insurance fraud,” said Mark J.F. Schroeder, DMV Commissioner and Chair of the Governor’s Traffic Safety Committee. “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.”

According to the Insurance Information Institute, staged crashes inflate the average auto insurance premium by about $100 to $300 per year. These types of scams are more common in states with a high number of drivers, like New York, which had the second-highest number of such crashes in the nation in 2023. There were 1,729 staged crashes in New York State in 2023, which is up 14 percent over 2022 and 34 percent over 2021.

While drivers cannot always predict what other drivers will do, the surest way to protect yourself is to practice defensive driving.

DMV’s online driver’s manual and practice tests provide a refresher for anyone interested. Here are some tips:

• Be prepared, look ahead, and keep both hands on the steering wheel.
• Anticipate errors by other drivers, bicyclists and pedestrians and think about what you will do if an error occurs.
• Do not assume a driver who approaches a STOP or YIELD sign will actually stop or yield.
• Maintain a safe speed.
• Signal before you turn or change lanes.
• Allow space and do not tailgate. Four out of every 10 crashes involve rear-end collisions, normally because a person is following too closely.
• Wear your seatbelt.
• Do not drive if you are tired or have consumed medication or alcohol.
• Keep your vehicle in good condition.
• Do not use handheld mobile devices while driving.

Drivers who take a DMV-approved defensive-driving course can take advantage of several benefits including: refreshing your driving knowledge; subtracting up to four points from your license; and, saving 10 percent on your auto insurance premium each year for three years.

The NYS Department of Financial Services (DFS) describes different types of insurance fraud and common auto insurance scams, such as the staged accident, runners and inflated claims, and it also provides information on how to respond.

If you are in a crash, DMV recommends you:

• Call the police and your insurance company.
• Take photos of the damage to both cars.
• Get the other driver’s plate number and insurance information.
• Record the contact information of anyone in the other car. 
• Don't give cash to the other driver.
• Be wary of tow trucks that you or law enforcement did not call.
• Be wary of anyone who suddenly appears at a crash scene to direct you to specific doctors or lawyers.
• File a crash report with the DMV.

For more information about the DMV, visit dmv.ny.gov or follow us on Facebook, X and Instagram.