Reps. Gottheimer, Gillen, Nehls and Fong Introduce Bipartisan Legislation to Criminalize Staged Motor Vehicle Accidents

Bill Aims to Crack Down on Fraud, Make Streets Safer and Reduce Costs for Consumers

TRENTON, NJ — A bipartisan group of lawmakers recently introduced the Stop Auto Fraud Act of 2026, legislation that would make it a federal crime to intentionally cause, stage or fabricate a motor vehicle accident as part of a fraudulent insurance claim.

The bill — introduced by Congresswoman Laura Gillen (D-NY 4) alongside Reps. Josh Gottheimer (D-NJ 5), Troy Nehls (R-TX 22) and Vince Fong (R-CA 20) — targets coordinated fraud rings and would hold those involved in staged accident schemes accountable.

The New Jersey Civil Justice Institute strongly supports the bill’s goal of ending auto insurance fraud, restoring fairness to the civil liability system, prosecuting those who game the system, and lowering costs for working families.

Elissa Frank, President of the New Jersey Civil Justice Institute, said, "Criminal actors who deliberately cause car accidents and defraud our legal system must be held accountable for driving up the cost of living and putting innocent New Jersey drivers at risk. We applaud Congressman Gottheimer for championing the Stop Auto Fraud Act alongside a bipartisan group of lawmakers to make staging an accident a federal crime and ensure New Jersey drivers no longer pay the price for insurance fraud. Cracking down on this most egregious form of legal system abuse — and holding the full ecosystem of culprits responsible — is a critical step in protecting our institutions of justice, and making the Garden State a safer and more affordable place to live and do business."

In addition to NJCJI, the legislation is endorsed by the National Insurance Crime Bureau, American Trucking Associations, American Bus Association, Truck Renting and Leasing Association, American Property Casualty Insurance Association (APCIA), National Association of Mutual Insurance Companies (NAMIC), National Tank Truck Carriers Association, Truckload Carriers Association, Trucking Association of New York, Texas Trucking Association, Southwest Movers Association, United Motorcoach Association and Coalition Against Insurance Fraud.

NJCJI is a nonpartisan, not-for-profit organization supported by many of New Jersey’s largest employers, business associations, and professional organizations. We work to promote a fair, efficient, and predictable civil justice system, which is essential for innovation, economic growth, and job creation.

###