South Carolina is facing a significant problem with vehicle-related insurance fraud, according to a recent analysis from the National Insurance Crime Bureau (NICB).
The state ranks 13th in the United States for questionable vehicle-related insurance claims, a figure markedly higher than states with similar populations. Staged vehicle accidents are identified as the most prevalent type of insurance fraud in South Carolina.
Eric De Campos, director of strategy, policy and government affairs for the NICB, emphasized the severity of the issue. “Staged vehicle accidents are one of the most significant fraud issues facing South Carolina. The impact on residents includes both a financial cost and a safety risk. Residents are not only faced with the costs of the damage done to their vehicles, but also risk serious injury and possible death as a result of vehicle accidents deliberately caused by fraudsters.”
The NICB’s analysis of fraudulent activities in South Carolina spanned from 2020 to 2022, examining claims city-by-city and county-by-county.
The analysis revealed that Columbia had the highest number of claims, accounting for 13% of the total. Greenville followed with 5%, and Florence with 4% of the total claims. In terms of counties, Richland County led other counties in the number of claims, representing nearly 15%. Charleston County and Greenville County each accounted for 7% of the total.
De Campos highlighted the critical importance of providing resources to combat this fraud, stating, “In order to combat this fraud, it is essential to provide the South Carolina Insurance Fraud Division and state Department of Insurance access to the critical resources needed to more effectively deter fraudsters. This can include raising minimum criminal penalties for insurance fraud.”
The NICB report also mentioned an increase in motorcycle thefts, as well as previous warnings about contractor fraud following natural disasters.
