Stop Auto Fraud Act of 2026

The Stop Auto Fraud Act of 2026 creates a new federal crime for individuals who knowingly stage or fabricate motor vehicle accidents to submit false insurance claims. The bill directly affects people involved in these schemes by imposing penalties that include fines and up to 10 years in prison, with sentences increasing to 20 years if serious bodily injury occurs and potentially life imprisonment if the fraud results in death. Additionally, any criminal fines collected under this new law must be deposited into the Highway Trust Fund rather than general government revenue.