Gov. Hochul announces statewide crackdown on staged crashes to curb auto insurance fraud

Sixteen people have been arrested in an ongoing statewide crackdown on auto insurance fraud, uncovering nearly $500,000 in attempted fraudulent claims, according to Governor Kathy Hochul's office. New York State Police and the state Department of Financial Services uncovered more than a dozen cases of alleged staged car crashes and fraudulent insurance claims spanning New York City and Suffolk, Onondaga, Monroe and Erie counties, with seven of the arrests occurring in the Bronx. "Auto insurance fraud is not a victimless crime — every staged crash, fraudulent claim and criminal scheme ultimately drives up costs for New Yorkers who play by the rules," Hochul said. "We're cracking down on fraudsters and making it clear that New York will not tolerate criminals gaming the system at the expense of hardworking families." In a Mar. 18 incident, multiple people staged a car crash in the Bronx and the suspects received medical attention after the incident that resulted in $70,000 in fraudulent medical costs. Another crash on Dec. 12, 2025 in Brooklyn occurred when the driver allegedly cut in front of another vehicle at an intersection. The driver then falsely accused the other of running a stop sign and received more than $16,000 in medical insurance claims. New York saw 1,729 reports of suspected staged motor vehicle accidents in 2023, according to state data. New York also has some of the highest auto insurance costs in the country, with average annual premiums exceeding $4,000. Staged car accidents can inflate New Yorkers insurance premiums up to $300. Hochul has made lowering auto insurance costs through efforts to combat staged crashes, fraudulent claims and other schemes part of her affordability agenda. In April, Hochul announced a partnership between the State Police, the Department of Financial Services, the Department of Motor Vehicles and the Division of Criminal Justice Services to coordinate efforts to investigate suspected insurance fraud. In 2025, insurance providers reported 43,811 incidents of suspected motor vehicle insurance fraud to the Department of Financial Services, increasing 80 percent since 2020. "By combining the investigative capabilities of the State Police with the specialized expertise of DFS, we are identifying these schemes, building stronger cases and holding those responsible accountable," said New York State Police Superintendent Steven James. The state also enacted auto insurance reforms as part of its fiscal year 2027 budget, including provisions allowing prosecutors to pursue criminal penalties against people who organize staged accidents, not just those directly involved in the crashes. Investigations remain ongoing, with additional enforcement actions expected, according to the governor's office.

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