Legislation making it illegal to defraud insurance companies by staging motor vehicle accidents has cleared the General Assembly and is awaiting Gov. Brian Kemp’s signature.
“There is an epidemic of insurance fraud and lawsuit fraud in Georgia involving staged motor vehicle accidents,” NFIB State Director Nathan Humphrey said. “Insurance fraud is already illegal, but existing law doesn’t directly or specifically address the crime of deliberately causing a motor vehicle accident to collect the insurance money, and existing law doesn’t do enough to discourage people from doing it.
“Business owners, especially those with company vehicles, are at risk of having to pay out of pocket to cover fraudulent litigation fees and increased insurance rates just because of a criminal act that is not adequately defined in the code,” Humphrey said. “House Bill 353 would help reduce insurance fraud by spelling out the specific acts that are prohibited and increasing the penalties of those convicted of staging a motor accident.”
