Staged truck crashes would be federal crime under Senate bill

"ATA commends Sen. Moody for introducing this legislation to close legal loopholes that criminals are exploiting to target America’s hardworking truckers," Hanscom says. (mphillips007/Getty Images)

A new Senate bill would make staged crashes into commercial motor vehicles a federal crime as New York trains investigators from 55 law enforcement agencies to prosecute these insurance fraud schemes.

Sen. Ashley Moody (R-Fla.) introduced S. 5058 on July 21 to amend federal transportation law in Title 49 of the U.S. Code to outlaw staged collisions with commercial motor vehicles. The bill seeks to extend criminal penalties.

“Anyone who stages or helps stage an accident with a commercial motor vehicle endangers people’s lives and livelihoods. On top of that, these stunts run up insurance premiums for everyone. Unacceptable. This legislation sends a clear message: If you do this, you will be prosecuted,” Moody said.

Called the Staged Accident Fraud Prevention Act, a companion bill was introduced in the House in April 2025. It calls for punishing a motor vehicle driver who intentionally causes a collision with a CMV or a person who arranges such a crash with a fine, up to 20 years of imprisonment, or both. A minimum sentence of 20 years would result if the collision caused serious bodily injury or death.

The 450,000 trucking jobs in Florida keep our state’s economy moving, but crazed individuals recognize staging accidents can land them a major payday - putting drivers at risk and raising insurance premiums.

My Staged Accident Fraud Prevention Act targets these fraudsters, and… pic.twitter.com/myl4sYWfRu — Senator Ashley Moody (@SenAshleyMoody) July 24, 2026

The Senate bill moved to the U.S. Committee on Commerce, Science and Transportation, while the House version (H.R. 2662) was referred to the House Committee on the Judiciary, where it has been stalled for more than a year.

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Hanscom 

Stakeholders including American Trucking Associations support the legislation. “The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods,” said Henry Hanscom, ATA’s chief advocacy and public affairs officer. “ATA commends Sen. Moody for introducing this legislation to close legal loopholes that criminals are exploiting to target America’s hardworking truckers. By establishing clear, enforceable criminal penalties, we can finally put an end to this dangerous and costly practice.”

According to R Street Institute, the top states experiencing staged crash auto claims in 2023 were California with 5,366 incidents, New York (1,729) and Florida (1,110). “Staged-accident fraud is a growing profit center for criminals,” the Washington-based think tank noted. “The insurance industry loses billions annually to fraudulent claims.”

Florida takes action

To combat lawsuit abuse, Florida lawmakers in 2023 enacted a sweeping package of tort reform measures taking aim at what Gov. Ron DeSantis described as a cottage industry of frivolous lawsuits filed by unscrupulous attorneys against trucking companies and other businesses.

Before the passage of House Bill 837, the number of motor vehicle civil tort cases brought in Florida reached 34,000 in 2022, compared with 23,000 in 2014, according to the Insurance Information Institute.

A high of 92,000 motor vehicle civil lawsuits were filed in 2023 — with attorneys rushing to bring 72,000 in March 2023 before the tort reform legislation became law March 24. These findings are contained in an III report called a “Review of Motor Vehicle Tort Cases Across the Federal and State Civil Courts.”

“Florida’s trucking industry doesn’t just move freight — it also bears the cost of organized fraud,” Florida Trucking Association CEO Scott Perry said.

New York targets schemes

This year, Gov. Kathy Hochul has targeted ridding New York of insurance fraudsters and punishing participants in staged crash schemes. She spearheaded reforms to lower auto insurance rates and combat fraudulent claims in her fiscal 2027 enacted budget.

Our volunteer firefighters put their lives on the line for their neighbors.

They shouldn’t have to risk their safety responding to fake accidents staged by criminals.

I’m fighting to crack down insurance fraud so our first responders can focus on keeping us safe. pic.twitter.com/0vh4VBLFl0 — Governor Kathy Hochul (@GovKathyHochul) April 17, 2026

Her mission to crush insurance fraud revealed staged crashes and associated insurance fraud inflated premiums by up to $300 annually, and insurance rates averaged $4,000 annually, $1,500 more than the national level.

“Outdated laws, special interest loopholes and jackpot insurance payouts to bad actors have long forced New Yorkers to pay some of the highest car insurance rates in the nation,” Hochul noted May 27 while announcing the reforms.

One of the reforms expanded the definition of “fraudulent insurance act” beyond the driver so that prosecutors can seek criminal penalties against everyone involved in organizing or supporting a staged accident.

Other measures now:

• Ensure fair rates for drivers
• Limit damages for people engaging in illegal activity when a motor vehicle accident occurred and those found “mostly” at fault in causing the collision
• Prevent insurance companies from setting exorbitant rates by prohibiting excess profits and returning savings to consumers
• Tighten legal definitions to clarify what is considered a “serious injury,” with damages reserved for those who can objectively demonstrate suffering a serious injury

Hochul revealed July 22 that the state Department of Financial Services and New York State Police partnered to train some 270 investigators, state troopers and local law enforcement officers from 55 agencies about detecting, investigating and prosecuting financial crimes such as auto insurance fraud and staged crashes.

Last year, 51,000 suspected incidents of insurance fraud were reported to the DFS.

“New York has experienced a sharp increase in suspected incidents of auto insurance fraud and the wave of hardship it has placed on law-abiding vehicle owners,” Hochul noted. “Together with our partners, we are enforcing the law, protecting New Yorkers from rising costs and making it clear that fraud will not be tolerated anywhere in this state.”