Rep. Troy Nehls wants to send people who stage fake car wrecks to federal prison.

Nehls, who represents Texas's 22nd Congressional District including Katy and Fulshear, co-led introduction of the bipartisan Stop Auto Fraud Act of 2026 on Wednesday, Sept. 2. The bill would make deliberately causing, staging or fabricating motor vehicle accidents to file false insurance claims a federal crime for the first time.

No federal statute has previously targeted staged-crash schemes specifically, according to Insurance Business Magazine. Prosecutors have historically pursued these cases through mail fraud, wire fraud and conspiracy charges.

Nehls introduced the bill alongside Reps. Laura Gillen, D-New York, Josh Gottheimer, D-New Jersey, and Vince Fong, R-California, according to a press release from Nehls's office.

"It's the hardworking American families who end up paying the price with high insurance rates," Nehls said in the release. "It's time we put an end to this, make it a federal crime, and hold these fraudsters accountable."

What the bill would do

Convicted fraudsters would face up to 10 years in federal prison. If a staged accident causes serious bodily injury, the penalty rises to 20 years. A crash that causes a death could bring a life sentence, the New York Post reported.

Fines collected under the law would go into the federal Highway Trust Fund, which finances road and bridge improvements.

Rising fraud, rising premiums

Reports of staged accidents increased 35% across the U.S. between 2024 and 2025, according to data from the National Insurance Crime Bureau (NICB). The bureau said staged-crash fraud can cost drivers up to $300 a year in higher premiums.

Texas drivers paid an average of $2,470 per year for full-coverage car insurance at the end of 2025, according to Insurify. That figure is projected to rise another 0.3% by the end of 2026.

Kyle McCollum, vice president of the NICB, said in the release that staged crashes are "violent offenses that put innocent drivers and pedestrians at risk of injury or worse." He called the fraud rising, costly and increasingly organized.

Sam Whitfield, senior vice president of federal government relations at the American Property Casualty Insurance Association (APCIA), said in the release that states with targeted anti-fraud reforms have "helped stabilize auto insurance markets, with some states even experiencing premium reductions."

Industry support, uncertain path

The bill has backing from 12 organizations, including the NICB, APCIA, National Association of Mutual Insurance Companies, American Trucking Associations and the Texas Trucking Association.

The legislation was introduced in the U.S. House. Newsday reported no companion Senate bill has been identified, which could complicate the bill's path forward. No committee hearing or floor vote has been scheduled.