A bipartisan House bill introduced today would increase penalties for staging automobile crashes to collect a payout.
On September 3, U.S. Reps Laura Gillen, osh Gottheimer, and Vince Fong introduced the Stop Auto Fraud Act of 2026.
If passed, the bill would make it a federal crime to stage a motor vehicle crash for the purposes of making fraudulent insurance claims, with increased penalties for fraudsters.
Under the bill, a person who stages a non-injury crash could be imprisoned for up to 10 years. If the staged crash results in an injury, a prison sentence of 20 years could be imposed. If a person stages a crash that results in death, they could face a maximum prison sentence of life in prison.
Lawmakers say that increasing penalties for staged crashes will improve highway safety and lower insurance rates nationwide.
“Long Islanders pay some of the highest car insurance rates in the country and ‘crash for cash’ schemes on our roads are driving rates even higher,” said Rep. Gillen. “When fraudsters stage car wrecks to scam their way to huge payouts, they’re putting lives at risk and forcing responsible drivers to bear the costs. I’m proud to lead this bipartisan bill to hold these criminals accountable, make our roads safer and lower sky-high car insurance costs.”
The bill is endorsed by groups including the National Insurance Crime Bureau, American Trucking Associations, American Bus Association, Truck Renting and Leasing Association, American Property Casualty Insurance Association, National Association of Mutual Insurance Companies, National Tank Truck Carriers Association, Truckload Carriers Association, Trucking Association of New York, Texas Trucking Association and Southwest Movers Association.
“On highways across the country, brazen criminals are intentionally colliding with other motorists in an attempt to score a big payday, and commercial trucks are a top target. Their selfish actions put the lives of innocent Americans at risk and contribute to soaring insurance premiums that raise costs for all consumers,” said Alex Rosen, SVP of Legislative Affairs, American Trucking Associations. “We need stronger penalties to deter those who perpetrate these schemes, which is why ATA strongly supports the Stop Auto Fraud Act. The trucking industry commends Reps. Laura Gillen and Troy Nehls for their leadership to make our roads safer and alleviate the financial burden imposed on families and businesses.”
“The Stop Auto Fraud Act of 2026 represents an important step toward protecting motorists, reducing insurance fraud, and improving roadway safety. The Truckload Carriers Association (TCA) strongly supports legislation that would make the submission of a fraudulent insurance claim arising from a staged motor vehicle accident a criminal offense. Staged crashes are not victimless crimes. These deliberate schemes place innocent drivers, passengers, first responders, and other road users at risk of serious injury or death. We commend Representatives Gillen and Nehls for recognizing the growing threat posed by staged vehicle accidents and for advancing a practical, bipartisan solution,” said Jim Mullen, President, Truckload Carriers Association.
“The National Tank Truck Carriers is proud to support the Stop Auto Fraud Act. Tank truck carriers operate in a uniquely high-risk environment, transporting valuable and often hazardous cargoes that make reliable insurance coverage essential to protecting their employees, equipment, customers, and the motoring public. Fraudulent insurance claims undermine the integrity of that system and drive up costs on carriers already managing significant operational risks. NTTC is grateful for the leadership of Representatives Gill and Nehls in combating insurance fraud and protecting responsible motor carriers,” said Ryan Streblow, President & CEO, National Tank Truck Carriers.
A similar bill called the Staged Accident Fraud Prevention Act introduced in July would make it a federal crime to stage a crash with a commercial vehicle.
