Staged accidents are driving up premiums—Here’s how New York can hit the brakes

A recent report from a Long Island news outlet highlighted an all-too-familiar pain point for consumers and insurance professionals alike: the surge in auto insurance premiums. While inflation, vehicle costs and repair expenses are contributing factors, one particularly dangerous—and preventable—driver of these rising rates is insurance fraud through staged automobile accidents.

The New York State Department of Motor Vehicles confirmed that staged crashes are on the rise—particularly in downstate areas like Long Island. According to the Insurance Information Institute, this kind of fraud adds $100 to $300 per year to the average auto policy. That’s not just a financial nuisance—it’s a systemic issue that’s putting lives at risk, and pushing affordable insurance further out of reach for New Yorkers.

For insurance professionals, these fraudulent claims don’t just inflate loss ratios—they threaten the very trust and financial stability of the no-fault system. But there is a smart, targeted solution on the table: S.5232/A.3851, a bill currently before the Codes committees in both chambers, which would finally crack down on the ringleaders behind these orchestrated crashes.

What the bill would do

Current law only penalizes those directly involved in causing staged accidents. But fraud isn’t just a one-person operation—it’s often organized. The proposed legislation would amend the Penal Law to include those who “direct, hire, request, encourage, orchestrate or invite” someone else to intentionally cause a collision.

This isn’t just about punishing bad actors—it’s about prevention. Giving law enforcement the tools to go after the masterminds behind staged crashes would create a meaningful deterrent—one that could reduce fraudulent claims and ease premium pressure statewide.

Why it matters to insurance agents and brokers

Insurance agents and brokers across the state see the downstream effects of this fraud every day: adjusters drowning in questionable claims, honest policyholders getting hit with unexplained rate hikes, and agents having tough conversations with clients about soaring premiums.

By supporting S.5232/A.3851, PIANY is not just pushing for criminal accountability—the association is advocating for a healthier, more sustainable insurance market. This bill would: deter organized insurance fraud, protect consumers from rising premiums, improve safety on New York roads and preserve the integrity of the no-fault system.

Public safety is at stake

Let’s not forget, staged accidents are incredibly dangerous. Often, criminals target elderly or female drivers, betting they’ll be less confrontational. In one tragic case on Long Island, 71-year-old Alice Ross lost her life in a staged crash. Her death spurred earlier reforms—now it’s time to build on that momentum and finish the job.

PIANY takes action

PIANY strongly supports S.5232/A.3851 as a smart, necessary step to protect both the insurance industry and the consumers we serve.

Tort reform has long been a top priority for the association, and this bill represents the latest in a series of initiatives aimed at curbing rising premiums and combating fraud. To learn more about PIANY’s position on this issue, read our position paper here.

Let’s make sure New York state takes a stand against staged crashes—for the sake of safety, fairness and a more affordable insurance future.