Congress Looks at Making Staged Crash a Federal Crime

A bill has been introduced in the U.S. Senate to make a staged auto crash with a commercial truck a federal crime. It is called the Staged Accident Fraud Prevention Act (S. 5058).

A companion bill has been introduced in the U.S. House.

The law — if passed — will make anyone found guilty of causing that kind of collision pay a large fine or face up to 20 years in prison. A crash causing serious injuries or death could see consequences beyond a 20 year prison sentence.

The law would not only indict those doing the crash but all the people planning it as well.

Congress is targeting crash for cash groups deliberately doing crashes to collect huge cash payouts from lawsuits against carriers.

Amwins looked at commercial auto premiums and found them up 9.4% in 2025. Social inflation, nuclear verdicts and high reinsurance costs have hurt insurers. Trucking case average nuclear verdicts hit $41 million in 2024.

That’s up from $21 million in 2020.

The American Property Casualty Insurance Association (APCIA) senior vice president, Sam Whitfield said these staged-accidents are not a victimless crime.

"Sophisticated 'crash-for-cash' rings intentionally orchestrate traffic collisions to exploit no-fault insurance systems, inflate property damage, and file fraudulent claims," Whitfield said. "These schemes put innocent motorists and truck drivers at risk while driving up insurance costs for everyone."

The Coalition Against Insurance Fraud says insurance fraud costs the industry $80 billion a year each year. The Insurance Research Council said about 25% of auto liability claims have some sort of fraud involved.

Whitfield is urging Congress to pass this bill.

"Strong enforcement tools are essential to deter organized fraud, improve roadway safety, and protect families from bearing the costs of criminal activity," he said. "APCIA urges Congress to advance this important legislation."

Source link: Insurance Journal — https://bit.ly/44U4r6w