US insurers say they have seen a 46% rise in the number of staged accident claims in the past two years.

A report by the National Insurance Crime Bureau found that New York City alone generated more than 1300 staged accident claims from 2007 to 2009, with each accident potentially costing more than US$100,000 ($123,000).

The trend, dubbed “crash for cash”, sees criminals target other criminals, as well as innocent drivers, particularly women and pensioners who are less confrontational following an accident.

Typical scenarios include four-car staged accidents on freeway exits as well as a car slamming on its brakes in front of an innocent driver while an accomplice blocks the other lane.

These crimes often involve fraudulent doctors and lawyers who sign the medical claim forms and process the claims and also pocket much of the fraudulent payout.

Allianz Australia, which has mounted a strong public campaign against increasing levels of insurance fraud in tough economic times, says it is “certainly aware that there is an element of criminal insurance fraud activity involved in staged and intentional accidents in Australia, particularly in the eastern states”.