WASHINGTON – Lawmakers have taken notice of the trend of staged accidents, introducing legislation to help stop the insurance scheme.
In July, U.S. Senator Ashley Moody (R-Florida) introduced the Staged Accident Fraud Prevention Act, which would extend criminal penalties to make intentionally staging an accident with a commercial motor vehicle a federal crime.
“With over 450,000 trucking jobs in Florida, it is safe to say that truck drivers keep the economy moving,” Moody said. “Unfortunately, there are crazed and dangerous fraudsters out there who would rather put people’s lives in danger for a quick payday instead of making an honest living putting in a hard day’s work.
“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.”
The American Property Casualty Insurance Association commended Moody for introducing the Senate Bill 5058.
“APCIA applauds Senator Ashley Moody for introducing the Staged Accident Fraud Prevention Act, legislation that would strengthen efforts to combat dangerous staged-crash schemes and hold fraudsters accountable,” said Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement. “The bill would establish federal criminal penalties for individuals who intentionally cause collisions with commercial motor vehicles or organize these schemes.
“Staged accident fraud is 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. These schemes put innocent motorists and truck drivers at risk while driving up insurance costs for everyone. Strong enforcement tools are essential to deter organized fraud, improve roadway safety, and protect families from bearing the costs of criminal activity. APCIA urges Congress to advance this important legislation.”
Florida has a high occurrence of staged accidents, as does Louisiana.
In March, two Louisiana attorneys were found guilty of charges related to staging such accidents. In all, more than 60 people have been charged in a federal probe of staged accidents in the New Orleans area.
And in 2021, attorney Danny Patrick Keating pleaded guilty to involvement in such a sceme, admitting to paying another cooperating government witness to stage 31 accidents. Keating said he represented 77 plaintiffs in subsequent lawsuits.
Representatives Mike Collins and Brandon Gill introduced the companion bill in the House last year.
“Staged accidents are a dangerous and costly crisis that is threatening public safety and household budgets across America,” said Stephen Waguespack, president of the U.S. Chamber of Commerce’s Institute for Legal Reform. “Senator Moody’s leadership on the Staged Accident Fraud Prevention Act builds on the momentum to put a stop to these organized crime rings that specifically target trucking businesses.”
Several other groups support the legislation, including the Independent Insurance Agents & Brokers of America, the Owner-Operator Independent Drivers Association, the National Tank Truck Carriers, the Truck Renting and Leasing Association, the American Bus Association, the National Motor Freight Traffic Association, the International Warehouse Logistics Association, the National Association of Mutual Insurance Companies, the International Foodservice Distributors Association, the Transportation Intermediaries Association, Associated Industries of Florida, Truckload Carriers Association, Georgia Motor Trucking Association, Texas Trucking Association and the American Tort Reform Association
Another piece of legislation introduced last month has a similar goal.
Representatives Laura Gillen (D-New York), Troy Nehls (R-Texas), Josh Gottheimer (D-New Jersey) and Vince Fong (R-California) introduced the bipartisan Stop Auto Fraud Act of 2026 to make motor vehicle collision fraud a federal crime, improve safety for drivers and could help lower insurance costs.
The APCIA also praised that bill.
“Auto claims fraud, including intentional crashes, staged accidents, fabricated medical bills, and AI-altered photo evidence, drives up costs throughout the system and ultimately raises auto insurance premiums for everyone,” Whitfield said. “States that have enacted targeted anti-fraud and staged accident reforms have strengthened enforcement, disrupted organized fraud rings, and helped stabilize auto insurance markets, with some states even experiencing premium reductions.
“We applaud Representatives Gillen, Nehls, Gottheimer, and Fong for introducing the Stop Auto Fraud Act of 2026, which would establish federal criminal penalties for deliberate staged and phantom auto accidents. By giving law enforcement additional tools to combat organized crime fraud, this legislation addresses a significant driver of rising auto insurance claim costs and helps protect consumers from unnecessary premium increases.”
The legislation also is supported by the National Insurance Crime Bureau, the National Association of Mutual Insurance Companies, the American Bus Association, the American Trucking Associations, the Trucking Association of New York, the Truck Renting and Leasing Association, the Southwest Movers Association, the Texas Trucking Association, the National Tank Truck Carriers Association and the Truckload Carriers Association (TCA).
