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Customer's FRS Backed Into: Potential Fraud?

Our customer's Scion FRS was backed into by this SUV a few weeks ago, it was caught on his FineVu CR500HD

These types of accidents are particularly hard to prove fault as the car in front reversed for no obvious reason. Often times this can be used to commit insurance fraud as the car in the back is usually found at fault if the accident is seen as a rear-ender. This type of fraud was popular in Russia and parts of Asia (see video example) as most drivers didn't have dashcams and knew it would be nearly impossible to prove they weren't at fault. Instead of getting screwed over by an insurance company or law enforcement, it made sense for some of these victims to simply settle with cash on the side of the road than go through the headache. 

While we suspect that this Mazda driver wasn't actually trying to commit any sort of insurance fraud and simply backed into our customer's car as they weren't paying attention, this type of claim has the potential to escalate into fraud. It's easy enough for the other party to claim that they were rear-ended after the fact to hopefully reduce the impact on their insurance premiums. For the at-fault party, the costs for lying about the claim are relatively minimal but the potential benefits can be significant, so many drivers choose to take this risk when they make their claims. 

In British Columbia, most passenger vehicles are insured by the same crown corporation, ICBC. Often times both parties in an accident are covered by ICBC which gives them an incentive to declare a claim as 50/50 so that both parties are at partial fault. In this case, the insurance premiums of both drivers can take a hit rather than just having one party at 100% fault. With ICBC, any party that is more than 25% at fault can see an increase in their insurance premiums (source)

In our customer's case, when he made the claim and provided the video evidence, ICBC immediately declared the other party 100% at fault, but it would be interesting to consider what would happen had there been no dashcam or witnesses on scene. We've heard stories of "witnesses" suddenly coming forward with statements about what happened, these witnesses have the potential to sway a claim one way or another and is another way that the insurance company can unintentionally promote committing fraud. From our perspective, the dashcam video evidence doesn't lie and we've seen time after time how they can curb insurance fraud. 

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