Nebraska Department of Insurance

NEBRASKA DEPARTMENT OF INSURANCE INSURANCE FRAUD PREVENTION DIVISION 941 O Street, Suite 400 Lincoln, NE 68508-3639

Staged Accident or Loss Fraud Hints

It is important to remember that the hints listed below are merely possible "red flags" that there may be some evidence consistent with an insurance fraud scheme.  Any one or two of these by themselves, may not raise your suspicion; however, when you have several of these hints present or a pattern begins to emerge, you should investigate further or forward your suspicion to the Insurance Fraud Prevention Division.

1. No police investigation at accident scene.
2. All parties deny indication of prior relationship.
3. Conflicting statements regarding how the loss occurred.
4. Insured refutes statements made by claimant/witnesses.
5. The accident occurs on private property near residence of parties.
6. Vehicle rented just prior to accident.
7. There has been adverse media coverage regarding the safety of the particular vehicle make or model involved in the accident.
8. The vehicle involved in the loss has a history of mechanical defects.
9. The vehicle involved in the loss has an expired factory warranty.
10. The vehicle involved is a leased vehicle with excessive mileage.
11. A prior vehicle claim included recovery for theft.
12. A prior accident involved a major collision.
13. The ignition lock was intact after recovery.
14. There were no signs of forced entry.
15. The vehicle involved was a diesel engine vehicle.
16. The vehicle involved was rebuilt.
17. The vehicle involved in the loss was a burned vehicle which was recovered shortly after the loss, or was burned but not stripped.
18. The vehicle title is a duplicate issue.
19. The title is from another state.
20. The title was recently transferred to the claimant.
21. The ownership documentation consists of an assigned title in the name of the previous owner.
22. The previous owner cannot be located or identified.
23. There is a lien against the vehicle that the claimant seems unable to pay.
24. There is comprehensive coverage but no collision on a late-model vehicle.
25. The vehicle was recovered by the insured.
26. The vehicle is a total loss, but the owner wants to retain possession.
27. The owner was unable to sell or trade the vehicle prior to the loss.
28. A lawsuit was filed against the manufacturer by the insured.
29. The vehicle was financed for more than current value.
30. Vehicle payments are in arrears.
31. The purchase was a cash transaction.
32. The loss includes numerous expensive articles that were in the vehicle.