The bill would also create special units dedicated to fighting this type of crime within the U.S. Attorneys' offices in the 10 cities with the most auto insurance fraud.

Sunday, at a press briefing, Sen. Schumer said auto insurance fraud is costing New York drivers an average of $200 per year in excess insurance costs.

"If insurance fraud were a business, it would be a Fortune 500 company," Sen. Schumer said.

He said the total cost of auto insurance fraud nationally comes to more than $23 billion per year.

It is time, Sen. Schumer said, to start striking back at auto insurance fraud by making it a federal crime.

"There is probably no single type of scam as widespread or damaging as auto insurance fraud, and yet federal law enforcement has done virtually nothing about it," Sen. Schumer said.

"That has to change, and with this bill, it finally can," he added.

Sen. Schumer said he will introduce the legislation some time this week.

New York Insurance Superintendent Gregory V. Serio applauded Sen. Schumer for his concern, adding that the senator should focus his efforts directly on New York state by convincing his colleagues in the New York State Assembly to pass similar legislation that has languished for the past two legislative sessions.

"We are gratified by Sen. Schumer's entry into the fight against auto insurance fraud," Mr. Serio said. "It is my hope that the senator will work to convince his former colleagues in the New York State Assembly to pass similar legislation which has been pending for some time in that house."

A disagreement in New York between the Republican-controlled Senate and Democrat-controlled Assembly over language in separate anti-fraud measures has stalled action in the legislature for more than a year.