UK insurance fraud amounted to £1.3bn in 2013, a record figure – and much of it was down to so-called "crash for cash" schemes.
The data, from the Association of British Insurers (ABI), mean that overall insurance fraud increased by 18 per cent compared to 2012.
Car insurance saw the largest rise in fraud, with dishonest claimants numbering nearly 60,000 – equating to a rise of 34 per cent. It is estimated that criminals attempted to defraud insurers of £811m.
For honest drivers, this means an additional £50 a year in higher premiums, according to the ABI.
One of the most costly and elaborate fraud techniques is "crash for cash", whereby a crash is staged for the purpose of making a false claim. Often those involved will disable their brake lights then brake suddenly, causing the vehicle behind (driven by an innocent motorist) to crash into them.
Aside from structural damage, fraudsters may claim for whiplash and other injuries – potentially netting them thousands.
One of the highest-profile frauds last year took place in County Durham, where 25 "crash for cash" accidents took place – causing local premiums to rise by around £100.
Non-car related frauds also accounted for a large portion of dishonest claims. One golfer claimed £8,000 for an injured knee, but was captured on camera giving golf lessons.
In another case, a vet was handed a prison sentence after claiming more than £200,000 on pets which didn't exist.
Higher premiums
While drivers in some areas may be facing higher premiums, they can take some solace in the fact that UK, continental and short term European breakdown cover is still available for a great price – from startrescue.co.uk.
Breakdown Cover from 
