Three arrested in auto fraud scam

Tampa, Florida -- Police have arrested three people in connection with a staged auto accident in Tampa.

These types of accidents are on the rise in the Bay area. All three people arrested are from Tampa and are being charged with participation in a staged motor vehicle accident that occured on Saturday at a Bay area intersection. The trio planned to file claims with a pain management clinic.

Two of the suspects in yesterday's crash admitted to police the accident was staged.

Staged auto accidents like the one that occurred at Sheldon Road and Hamilton Avenue are a big reason why Tampa has been ranked number two in the country for false auto claims.

"It's huge. It's absolutely enormous and it represents millions of dollars in fraud," said State Chief Financial Officer Alex Sink.

Scammers will stage a car accident, report it to police and insurance companies, then pocket the insurance money instead of using it for bills and repairs.

"Every driver that has auto insurance is paying for auto insurance fraud in the form of higher insurance premiums and the estimate is around $200-$300 annually," said Amy Moore, a spokeswoman for Allstate Insurance.

Cracking down on auto insurance and personal injury fraud is a top priority for the insurance industry this legislative session. They're lobbying to give state fraud investigators the authority to pull over suspects and they also want to ensure personal injury clinics are licensed with the state.

One of the best protections against accident fraud is keeping plenty of distance between your car and the one in front of you. You should also pay attention to the other cars surrounding you.

If you know of someone committing fraud, you can call the state hotline at 1-800-378-0445. You could be eligible for up to a $25,000 reward.