Reps. Gillen, Nehls, Gottheimer and Fong Introduce Bipartisan Legislation to Make Motor Vehicle Collision Fraud a Federal Crime, Lower Car Insurance Premiums
Auto insurance fraud, like staged vehicle accidents, costs consumers an estimated $300 a year in increased premiums.
WASHINGTON, DC — Today, Congresswoman Laura Gillen (D-NY-04) alongside U.S Representatives Troy Nehls (R-TX-22), Josh Gottheimer (D-NJ-05) and Vince Fong (R-CA-20) introduced the bipartisan Stop Auto Fraud Act of 2026 to make motor vehicle collision fraud a federal crime, improve safety for drivers and lower car insurance rates nationwide. The legislation targets insurance fraud schemes in which bad actors deliberately cause, stage or fabricate motor vehicle accidents to file false claims and defraud insurance companies for large cash payouts.
“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.”
“Bad actors across the country are deliberately causing, staging and fabricating car wrecks and filing phony insurance claims, and it’s the hardworking American families who end up paying the price with high insurance rates," said Rep. Nehls. "It’s time we put an end to this, make it a federal crime, and hold these fraudsters accountable. I’m proud to co-lead the bipartisan Stop Auto Fraud Act of 2026 with Congresswoman Gillen to crack down on these scams, and put the fines collected into the Highway Trust Fund, which provides the resources to improve our roads, and make our roads safer.”
"Insurance fraudsters send premiums skyrocketing and drive up the cost of living for Jersey families. The fraud rings behind them don't stop at state lines," said Rep. Gottheimer. "That's why I'm proud to work with Reps. Gillen, Nehls, and Fong on this bipartisan bill to make staging or fabricating a crash a federal crime, with fines going straight back into fixing our roads and bridges. We're cracking down on the hucksters and fighting to bring down costs for Jersey families."
"Californians already pay some of the highest car insurance premiums in the nation on top of having one of the highest costs of living,” said Rep. Fong. "Insurance fraud is making it worse. Staged car accidents are a deliberate, organized scam that puts innocent people at risk and drives up premiums for every driver on the road. In the Central Valley, where families depend on their vehicles to get to work, take their kids to school, and run their businesses, these are real costs hitting real people. The Stop Auto Fraud Act makes these schemes a federal crime and gives law enforcement the tools to dismantle the criminal networks behind them."
New Yorkers pay some of the highest car insurance rates in the nation, totaling just over $4,000 annually on average, nearly $1,500 above the national average. Insurance fraud, including staged crashes, further drives up costs for consumers. According to the Insurance Information Institute, staged accidents and related insurance fraud can cost families as much as $300 per year on average.
Insurance carriers reported 38,270 incidents of suspected motor vehicle insurance fraud to the New York State Department of Financial Services in 2023, a 58% increase from 2020. Recently, Florida, Louisiana and New York have enacted laws targeting bad actors who stage elaborate accidents to win payouts from insurance companies or jury awards.
The Stop Auto Fraud Act would make it a federal crime to knowingly stage or fabricate a motor vehicle crash and submit a fraudulent claim. The bill would impose penalties, including possible jail time, for violations. Any collected fines would be paid into the Highway Trust Fund for local and interstate roads, bridges and public mass transit systems.
“Staged vehicle accidents are not harmless property crimes. These are violent offenses that put innocent drivers and pedestrians at risk of injury or worse—all so that fraudsters and their facilitators can cash in. As NICB data and frontline investigations demonstrate, staged accident fraud is on the rise, costly—up to $300 a year in increased premiums—and increasingly organized. And it demands an organized, effective response. NICB applauds Representative Gillen’s Stop Auto Fraud Act of 2026, a bipartisan measure making clear that staged accidents are serious crimes deserving serious consequences,” said Kyle McCollum, Vice President, National Insurance Crime Bureau.
“Auto claims fraud, including intentional crashes, staged accidents, fabricated medical bills, and AI-altered photo evidence, drives up costs throughout the system and ultimately raises auto insurance premiums for everyone,” said Sam Whitfield, Senior Vice President of Federal Government Relations and Political Engagement, American Property Casualty Insurance Association (APCIA). “States that have enacted targeted anti-fraud and staged accident reforms have strengthened enforcement, disrupted organized fraud rings, and helped stabilize auto insurance markets, with some states even experiencing premium reductions. We applaud Representatives Gillen, Nehls, Gottheimer, and Fong for introducing the Stop Auto Fraud Act of 2026, which would establish federal criminal penalties for deliberate staged and phantom auto accidents. By giving law enforcement additional tools to combat organized crime fraud, this legislation addresses a significant driver of rising auto insurance claim costs and helps protect consumers from unnecessary premium increases.”
“Staged crashes and claims connected to them are a particularly malicious form of insurance fraud,” said Jimi Grande, Senior Vice President of Federal & Political Affairs, National Association of Mutual Insurance Companies. “Not only do these fraudsters endanger innocent drivers and communities all across the country, they also cause extensive financial harm. NAMIC applauds Representatives Gillen and Nehls, along with their co-sponsors, for their work to combat scammers and protect all honest road users.”
“The Truck Renting and Leasing Association (TRALA) proudly supports the Stop Auto Fraud Act and appreciates the leadership from Congresswoman Gillen and Congressman Nehls,” said Jake Jacoby, President & CEO, Truck Renting and Leasing Association. “Staged accidents continue to cause havoc with insurance premiums. This legislation will help deter bad actors from attempting to put trucking companies out of business by fabricating accidents, then running crooked legal and medical companies who attempt to profit from this blatant criminal activity.”
"The Trucking Association of New York (TANY) thanks Congresswomen Gillen for taking a strong stand against those who put others at risk using staged accidents for their own financial gain,” said Kendra Hems, President, Trucking Association of New York (TANY). “These are serious crimes and should be treated as such. The Stop Auto Fraud Act does just that and is an important step to reign in fraud and abuse of the insurance system. For the trucking industry, fraudulent and staged claims contribute directly to unsustainable increases in commercial auto insurance costs, putting additional pressure on carriers that are working hard to operate safely and keep our economy moving. We appreciate Congresswoman Gillen’s leadership and look forward to continuing to work with her on the issue."
“Staged crashes and fraudulent insurance claims impose real costs on responsible motorcoach operators and ultimately make it harder to provide safe, affordable transportation,” said Fred Ferguson, President and CEO of the American Bus Association. “The American Bus Association supports the Stop Auto Fraud Act because it gives law enforcement another tool to hold bad actors accountable and protect legitimate transportation businesses from organized fraud. We thank Representatives Gillen and Nehls for working together on this bipartisan effort.”
“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.
The legislation is endorsed by the National Insurance Crime Bureau, American Trucking Associations, American Bus Association, Truck Renting and Leasing Association, American Property Casualty Insurance Association (APCIA), National Association of Mutual Insurance Companies (NAMIC), National Tank Truck Carriers Association, Truckload Carriers Association, Trucking Association of New York, Texas Trucking Association and Southwest Movers Association.
The full bill text can be found here.
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