Car Insurance Fraud: New Federal Penalties for Staged Crashes
The bill has support from both parties, which helps its chances, but it was introduced late in the year and needs to pass through committees in both the House and Senate.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
The bill creates a brand new federal felony for staging or faking car accidents to collect insurance money, with penalties up to 10 years in prison, 20 years if someone is seriously hurt, and life in prison if someone dies. People who commit this type of fraud would now face federal charges and a federal criminal record on top of any state charges.
“shall be fined under this title or imprisoned not more than 10 years, or both. If the violation results in serious bodily injury (as defined in section 1365 of this title), such person shall be fined under this title or imprisoned not more than 20 years, or both; and if the violation results in death, such person shall be fined under this title, or imprisoned for any term of years or for life, or both.”
The Stop Auto Fraud Act of 2026, introduced by a bipartisan group of House members, seeks to establish federal criminal penalties for staged collisions. The bill is backed by major trucking associations citing the high cost of fraudulent claims and safety risks to commercial drivers.
Lawmakers introduced the Stop Auto Fraud Act of 2026 to crack down on insurance fraud rings. The bill proposes 10 years for staging a crash, 20 years for injuries, and life imprisonment for deaths resulting from the fraud.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Stop Auto Fraud Act of 2026
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