Sen. Chuck Schumer is introducing federal legislation he believes will significantly impact auto insurance fraud crimes and the criminals who perpetrate them.

This legislation, titled Cheaper Car Insurance Act of 2010, would set up new federal penalties for auto insurance fraud.

In a recent conference call from Washington, the senator said the new legislation would set up specific penalties for the criminals who practice the fraud.

He said it is triggered by a new report which reveals auto insurance fraud is on the rise in New York and it is causing increased insurance rates for drivers.

According to the senator, the rise in suspected insurance fraud cases in New York has increased 33 percent since 2006.

This has caused insurance companies to increase auto insurance rates an average of 6.35 percent last year alone, he said.

"The problem has exploded in New York City and insurance experts say that upstate New York is the next target," the senator said.

When asked why, Sen. Schumer compared it to the drug trafficking trade.

"The heat is on in the city to bring insurance fraud criminals to trial and because of this, they are moving their operations to upstate," he said.

He also noted there are criminals in the local area who are mimicking the big city operators.

Schumer's legislation will go after these criminals who are operating across the state, requiring them to pay with jail time and fines.

"The Cheaper Car Insurance Act of 2010 sends a very simple, very strong and very clear message to anyone even thinking of committing auto insurance fraud.

"They can expect to be arrested, expect to be tried in federal court by federal prosecutors and if they are found guilty, they don't need to make any plans for the next five to 15 years."

Schumer's legislation would also impose fines, decided by a judge, of up to $100,000.

These jail times and fines would apply to insurance fraud master minds, organizers and low level participants.

He went on to say, "Until we tackle this problem head on, insurance rates will continue to climb. I will fight to see this legislation becomes law so that New Yorkers can see their insurance rates stop rising."

The senator also said he believes Washington, D.C., has more snow than upstate New York does at this time.

"I and my staff have been at the office, despite the snow," he said, noting CNN was taping at his office Wednesday.

One of the senator's staff members said he had 40 inches of snow in his front yard.

But, he noted, he was up to the challenge snow presents.

"I'm from upstate New York, originally," he said.