New Federal Bill Would Target Staged Crashes

A new bipartisan bill in Congress would make certain staged motor vehicle crashes and related fraudulent insurance claims a federal crime. The Stop Auto Fraud Act of 2026 was introduced in the U.S. House on September 3. The proposal would establish federal criminal penalties of up to 10 years in prison for the basic offense. Higher penalties could apply when someone is seriously injured or killed. The legislation covers motor vehicle crashes generally. It is not limited to commercial trucks. However, several trucking organizations are supporting the proposal because of concerns about staged crashes involving commercial vehicles.

Staged Crashes Would Become a Federal Crime

The Stop Auto Fraud Act was introduced as H.R. 10269 by Rep. Laura Gillen of New York. Reps. Troy Nehls of Texas, Josh Gottheimer of New Jersey and Vince Fong of California joined as original cosponsors.

The bipartisan proposal would amend Title 18 of the U.S. Code by creating a new federal offense called “motor vehicle collision fraud.”

Under the bill, a person could face federal prosecution for knowingly carrying out or attempting a scheme that involves two elements. First, the person would have to cause, stage, fabricate or simulate a motor vehicle accident. Second, the person would have to submit a false, fictitious or fraudulent insurance claim connected to that accident.

The legislation specifically lists claims involving medical treatment, repair costs, lost wages and lost benefits among the types of losses that could be covered.

Penalties for Staged Crashes Could Reach Life in Prison

A violation of the proposed law could result in a fine, up to 10 years in federal prison, or both.

The potential punishment would increase when a staged crash causes more serious consequences. If the violation results in serious bodily injury, a person could face a fine, up to 20 years in prison, or both.

The most severe penalty would apply if the violation results in death. In that situation, the bill allows for a fine and imprisonment for any term of years or for life.

These are maximum penalties proposed in the legislation. The bill has not become law, so these new penalties are not currently in effect.

Fines Would Go to the Highway Trust Fund

The bill also specifies what would happen to criminal fines collected under the proposed federal offense.

Those fines would be deposited into the Highway Trust Fund. The fund provides federal money for transportation programs, including highway and transit spending.

The bill itself does not establish a specific dollar amount for the fines. Instead, it states that offenders may be fined under Title 18 and directs fines collected under the new section to the Highway Trust Fund.

Trucking Groups Back the Stop Auto Fraud Act

Several national and state trucking organizations are backing the Stop Auto Fraud Act. Supporters include the American Trucking Associations, Truck Renting and Leasing Association, National Tank Truck Carriers, Truckload Carriers Association, Trucking Association of New York and Texas Trucking Association. ATA said commercial trucks can be targets of staged-crash schemes and argued that stronger federal penalties could help deter this type of fraud.

The Truck Renting and Leasing Association and Trucking Association of New York pointed to commercial auto insurance costs as a reason for supporting the bill. TRALA President and CEO Jake Jacoby said staged accidents can affect insurance premiums and create financial problems for trucking companies. TANY President Kendra Hems similarly said fraudulent and staged claims contribute to rising commercial auto insurance costs and place additional pressure on carriers.

National Tank Truck Carriers also backed the proposal. NTTC President and CEO Ryan Streblow said fraudulent insurance claims can increase costs for carriers already managing significant operational risks. These statements reflect the trucking groups’ reasons for supporting the legislation. The bill itself does not establish how much staged crashes cost the trucking industry or how much the proposal could affect insurance premiums.

Bill Is Broader Than Commercial Truck Crashes

An important part of the Stop Auto Fraud Act is its broad scope.

The language does not require the staged accident to involve a commercial motor vehicle. It refers to a “motor vehicle accident.”

That distinguishes the proposal from other federal legislation specifically aimed at staged crashes involving commercial vehicles.

The American Trucking Associations described H.R. 10269 as complementary to the Staged Accident Fraud Prevention Act. That separate proposal focuses specifically on staged accidents involving commercial motor vehicles.

The Stop Auto Fraud Act would instead establish a federal offense that could apply to fraudulent staged crashes involving different types of motor vehicles.

Stop Auto Fraud Act Is Not Yet Law

The Staged Crashes proposal is still early in the federal legislative process.

H.R. 10269 was introduced in the House on September 3 and referred to the House Committee on the Judiciary.

The committee could consider or amend the legislation before deciding whether to advance it. The bill would need to pass both chambers of Congress in the same form before it could be sent to the president.

For now, the new federal penalties described in the Stop Auto Fraud Act are only proposed changes.

If enacted in its current form, the legislation would create a federal criminal offense covering schemes that combine intentionally staged or fabricated motor vehicle accidents with fraudulent insurance claims. The maximum prison term would depend on whether the offense results in serious injury or death.