Legislation to Crack Down on Staged Accidents Introduced

• By: Raaed Haddad
• July 29, 2026

Last week, Sen. Ashley Moody (R-Florida) introduced the “Staged Accident Fraud Prevention Act” with broad industry support.

The legislation would extend criminal penalties to make intentionally staging an accident with a commercial motor vehicle a federal crime; establish criminal penalties for individuals who organize or participate in staged crashes; and hold attorneys, physicians, and other co-conspirators accountable if they knowingly participate in this fraud.

This important legislation is intended to deter organized insurance fraud, protect motorists and commercial drivers, and ensure that all individuals who knowingly participate in these criminal schemes are held accountable under federal law.

“The Big ‘I’ applauds Sen. Moody for introducing legislation to crack down on staged accidents that endanger motorists, disrupt supply chains and fuel lawsuit abuse,” said Nathan Riedel, Big “I” senior vice president of federal government affairs. “This commonsense measure will help deter insurance fraud, reduce unnecessary litigation costs and ease the pressure of rising insurance premiums on responsible commercial operators and consumers nationwide.”

The legislation is also supported by the National Association of Mutual Insurance Companies (NAMIC), American Property Casualty Insurance Association (APCIA), American Tort Reform Association and the American Trucking Association, among others.

“The Staged Accident Fraud Prevention Act” was also introduced in the U.S. House of Representatives by Rep. Mike Collins (R-Georgia) and Rep. Brandon Gill (R-Texas) earlier this year.

In recent years, several states have enacted laws specifically targeting staged auto accidents, including Florida, Georgia and Louisiana. Most recently, New York Gov. Kathy Hochul signed into law a comprehensive series of auto insurance measures that are arguably the most significant legal reforms and anti-fraud initiatives to be implemented by any state in over a year.

The Big “I” will continue to advocate against fraud of this nature, while advocating for independent insurance agents and brokers. Look out for updates in the News & Views e-newsletter every Thursday.

Raaed Haddad is Big “I” director of federal government affairs.