How Fleet Owners Can Avoid Fraudulent Accident Claims

It’s no secret that keeping a fleet running smoothly is a big undertaking. There is so much that goes into managing schedules, your drivers, and all the vehicle upkeep. 

But do you know that there is a hidden problem that can disrupt the smooth operations of your business? That is, fraudulent accident claims. 

A Fox Business article reports that staged accidents are becoming way more common in U.S. roadways. They are particularly a growing problem in New York. In fact, the state recorded the second-highest number of staged crashes in 2023.

For fleet owners, these scams are more than a nuisance; they are a serious financial threat. Fraudulent claims cost insurers billions every year and can trickle down to affect your premiums and your business’s bottom line.

You’re not powerless, however. You can protect yourself and your business with some smart strategies that won't break the bank. Here’s what you can do to keep the scammers at bay and protect your fleet from fraudulent claims.

#1 Outfit All Fleets With Dash Cam Systems

Dash cameras are powerful tools, providing undeniable video evidence of what truly happened during an incident. This footage is important for disproving false claims and can even deter scammers.

For instance, dash cams expose common tactics like the ‘swoop and squat.’ In this technique, a vehicle suddenly cuts in front of a truck and brakes. Or a fraudster deliberately reverses into a truck to make it appear as a rear-end collision. Without video proof, proving innocence in such scenarios becomes very difficult.  

Don’t go for a single dash cam system, however. Fleet camera systems that offer 360-degree visuals of vehicles would be the best bet. 

As these feature high-tech, multi-cameras, you'll be able to keep an eye on every angle of your fleet, not just the front and back. This means you could have dash cameras that face both the road and the driver, plus extra cameras to keep an eye on cargo. 

A case in point is SalSon Logistics. According to the Vestige, its accident payouts came down, dropping from six-figure annual totals to less than $200,000 by 2024, after using fleet cameras. 

#2 Use Telematics to Monitor Driving Behavior

Telematics systems use vehicle sensors and GPS to track location, real-time driver behavior, and routes. They log incidents like harsh braking or speeding. This technology collects data on speed patterns, braking, acceleration, time, location, and even driver phone usage. This creates a comprehensive picture of driving events.  

This data is powerful for fraud prevention. Insurers use it to validate claims quickly and detect suspicious activities. 

Telematics can spot unusual driving patterns, such as sudden, repeated hard braking or abrupt stops, which might signal staged accidents. It also verifies if the claimed accident details align with the recorded data.  

Furthermore, telematics can track if a driver used their phone just before an accident. This helps flag potentially fraudulent claims involving distracted driving. 

This technology also helps reconstruct an accident scene. It shows the exact sequence of events, which makes it very clear who was responsible for the accident. 

It could be due to these benefits that the global commercial vehicle telematics market is predicted to witness rapid growth. It’s expected to grow to $130.08 billion in 2030 from $61.52 billion in 2024. 

#3 Train Drivers on Defensive Driving and Incident Reporting

Drivers are the eyes and ears on the road. Proper training helps them not only steer clear of accidents, but also know exactly what to do if an incident occurs. 

Teach drivers to drive defensively. Defensive driving training teaches drivers to anticipate hazards and minimize risks. Important techniques that you should teach them include maintaining safe following distances, thoroughly checking blind spots, allowing extra space for turns, and anticipating other drivers' mistakes.

Personalized training is best for defensive driving. If a driver has issues with speeding, you can offer a targeted training module specifically on speed management to help them out. 

Even with the best training, however, accidents can happen. Drivers need a clear plan for what to do. Offering training sessions on proper incident reporting can be of great help. 

Teach them to take photos of the scene, gather names and contact details of witnesses, and document any damage, no matter how minor it seems. Advise them to stay calm and avoid admitting fault, even if they are just being polite. 

It also helps to have a simple checklist or a mobile app that walks them through what to do after an accident. The quicker and more accurately they report, the better your chances of catching a fraudulent claim before it gains traction.

Putting it all together, protecting your fleet from fraudulent claims isn't about being paranoid; it's about being prepared. 

These strategies work together to create a comprehensive defense system that protects your business, your drivers, and your bottom line. The small investment in technology and training pays for itself many times over when it prevents even one fraudulent claim from succeeding.

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