Trucking groups back legislation targeting fraudulent collision claims and schemes that put commercial vehicles — and their operators — at risk.
Staged crashes aren’t just an insurance problem. For trucking companies, they can mean damaged equipment, injured drivers, costly claims and potentially years of increased insurance costs.
After years of fighting litigation and even nuclear verdicts related to staged crashes, relief could be in sight for the trucking industry.
Bipartisan federal legislation introduced in the U.S. House of Representatives this week would make deliberately staging or fabricating a motor vehicle crash for the purpose of filing a fraudulent insurance claim a federal crime.
U.S. Reps. Laura Gillen (D-NY), Troy Nehls (R-TX), Josh Gottheimer (D-NJ) and Vince Fong, (R-CA) introduced the Stop Auto Fraud Act of 2026 on Sept. 3. A similar bill was introduced in the Senate in July of this year.
The House legislation would establish federal criminal penalties for anyone who knowingly stages or fabricates a motor vehicle crash and submits a fraudulent insurance claim. Violators could face fines and possible jail time.
Any fines collected under the legislation would be deposited into the Highway Trust Fund for use on roads, bridges and public mass transit systems.
“Crash for cash” schemes can involve intentionally causing collisions, staging accidents that never occurred or fabricating evidence to support fraudulent claims. Commercial trucks are among the vehicles targeted by such schemes.
Support from industry groups
The Truckload Carriers Association (TCA) spoke out in support of the bill.
“Staged crashes are not victimless crimes,” said Jim Mullen, president of TCA. “These deliberate schemes place innocent drivers, passengers, first responders, and other road users at risk of serious injury or death.”
Mullen says TCA supports making the submission of a fraudulent insurance claim arising from a staged motor vehicle accident a criminal offense.
The American Trucking Associations (ATA) also supports the legislation, saying stronger penalties are needed to deter those who deliberately cause crashes.
“On highways across the country, brazen criminals are intentionally colliding with other motorists in an attempt to score a big payday, and commercial trucks are a top target,” said Alex Rosen, senior vice president of legislative affairs for the ATA. “Their selfish actions put the lives of innocent Americans at risk and contribute to soaring insurance premiums that raise costs for all consumers.”
The Truck Renting and Leasing Association (TRALA) cited another potential consequence for trucking companies: Fraudulent crash claims can be used in schemes involving crooked legal and medical operations that seek to profit from fabricated accidents.
“Staged accidents continue to cause havoc with insurance premiums,” said Jake Jacoby, TRALA president and CEO. “This legislation will help deter bad actors from attempting to put trucking companies out of business by fabricating accidents, then running crooked legal and medical companies who attempt to profit from this blatant criminal activity.”
The Trucking Association of New York (TANY) also supports the legislation, pointing to the impact fraudulent and staged claims can have on commercial auto insurance costs.
Staged crash schemes also costly for the general public
The Insurance Information Institute estimates that staged accidents and related insurance fraud can cost consumers as much as $300 annually in increased insurance premiums.
Gillen, the bill’s lead sponsor, said staged crashes are both a safety threat and a financial burden.
“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,” Gillen said.
The Stop Auto Fraud Act has received support from the National Insurance Crime Bureau, ATA, TCA, TRALA, the American Bus Association, the American Property Casualty Insurance Association, the National Association of Mutual Insurance Companies, the National Tank Truck Carriers Association, TANY, the Texas Trucking Association and Southwest Movers Association.
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
