Sponsors (5)
The bill creates a federal crime to deter staged-collision fraud and fund highways—likely reducing fraud and boosting road funding—but increases federal prosecutions and incarceration risk, may slow legitimate claims, and directs fines away from restitution or other crime-prevention uses.
Drivers and insurance policyholders could face fewer staged-collision frauds and potentially lower auto insurance costs because creating a federal crime deters organized fake collisions and fraudulent claims.
Taxpayers and motorists receive additional funding for road and bridge projects because fines collected under the new statute are deposited into the Highway Trust Fund.
Federal and state law enforcement and prosecutors gain a clear statutory tool to investigate and prosecute cross-state organized staged-collision schemes, improving the ability to pursue complex fraud networks.
People accused and convicted of staged-collision schemes — and taxpayers who fund the system — could face increased federal prosecutions, leading to more incarceration and higher court and custody costs.
Insurers, claimants, and policyholders may experience heavier federal scrutiny that could slow legitimate claims processing and raise administrative burdens and costs.
Taxpayers and victims may see criminal penalties redirected to the Highway Trust Fund rather than used for victim restitution or general crime‑prevention programs, which some may view as an inappropriate earmark of fines.
Based on analysis of 2 sections of legislative text.
Creates a federal crime for staging motor vehicle accidents and filing false motor vehicle insurance claims, and directs collected fines to the Highway Trust Fund.
Official title: To amend title 18 to include an offense for motor vehicle collision fraud, and for other purposes.
Introduced September 3, 2026 by Laura Gillen · Last progress September 3, 2026
Creates a new federal crime that makes it illegal to knowingly cause, stage, fabricate, or simulate a motor vehicle accident or to submit a false or fraudulent insurance claim for losses (including medical treatment, repair costs, lost wages, or benefits). Criminal fines collected under the new offense must be deposited into the Highway Trust Fund. Adds a new section to title 18 of the U.S. Code for this offense and updates the title 18 table of sections. The short title of the statute is set as the "Stop Auto Fraud Act of 2026."