Gillen introduces federal bill to criminalize staged crash insurance scams

Rep. Laura Gillen introduced the Stop Auto Fraud Act of 2026, proposing that orchestrated vehicle collisions for insurance payouts become a federal offense punishable by up to ten years in prison, with enhanced penalties for crashes that result in injury or death. The measure, co-sponsored by Reps. Troy Nehls, Josh Gottheimer and Vince Fong, would channel fine revenues into the federal Highway Trust Fund.

Gillen noted that New York drivers face premiums averaging $3,492 per year, well above the national average, and that staged accidents can add more than $300 to individual bills. She emphasized that fraud often involves inflated injury claims and unnecessary medical procedures. If a staged crash causes serious bodily injury, the penalty could rise to twenty years, or life imprisonment if a death occurs. The bill aims to give federal prosecutors a clear tool to combat this growing form of organized insurance fraud.