In a major bipartisan push to combat rising auto insurance fraud, four U.S. Representatives—Laura Gillen (D-NY-04), Troy Nehls (R-TX-22), Josh Gottheimer (D-NJ-05), and Vince Fong (R-CA-20)—introduced the *Stop Auto Fraud Act of 2026* earlier this month. The legislation would make deliberately staged motor vehicle collisions a federal crime for the first time, carrying penalties of up to ten years in prison—and life imprisonment if the fraud results in bodily injury or death to an innocent person. Fines collected under the law would flow directly into the Highway Trust Fund to support road safety improvements.
The bill responds to a sharp surge in “crash-for-cash” schemes—fraudulent collisions orchestrated to generate inflated insurance claims. In New York alone, insurers reported 38,270 suspected cases to the State Department of Financial Services in 2023—a 58% jump since 2020. Rep. Gillen emphasized the human and economic toll: “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… 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.”
The National Insurance Crime Bureau (NICB) strongly endorsed the measure. “Staged vehicle accidents are not harmless property crimes,” said Kyle McCollum, NICB Vice President. “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.” NICB data shows such fraud is increasingly organized, costing honest policyholders up to $300 annually in higher premiums.
The commercial trucking industry—frequently targeted due to the high claim values associated with large vehicles—also voiced robust support. Alex Rosen, SVP of Legislative Affairs at the American Trucking Associations (ATA), noted: “Brazen criminals are intentionally colliding with other motorists… and commercial trucks are a top target. Their selfish actions put the lives of innocent Americans at risk and contribute to soaring insurance premiums.” The bill enjoys broad industry backing, including from APCIA, NAMIC, the American Bus Association, Truckload Carriers Association, and multiple state and national trucking associations.
With bipartisan sponsorship and coalition support spanning insurers, law enforcement, and transportation stakeholders, the Stop Auto Fraud Act signals a coordinated federal effort to deter organized fraud—prioritizing public safety, fiscal accountability, and fairness for millions of responsible drivers.
Source: https://gillen.house.gov/media/press-releases/gillen-nehls-gottheimer-fong-introduce-bipartisan-stop-auto-fraud-act
Source: https://www.insurancejournal.com/news/national/2026/09/18/885459.htm
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