New research has raised doubts on allegations by the insurance industry that fraudulent road traffic accident claims are responsible for the increased cost of motor insurance premiums.

In November 2012, a report published by the insurance industry funded Insurance Fraud Bureau claimed that one in seven personal injury claims is linked to “crash for cash” scams and the frauds cost policyholders a combined sum of nearly £400 million a year.

The latest research involved submitting Freedom of Information requests to a number of police forces across the country. Five forces had no data relating to “crash for cash” accidents, two failed to reply and one force had investigated just two allegedly fraudulent traffic accidents in the past three years.

The insurance industry continues to peddle the myth that fraudulent claims are out of control. ~Ann Mahoney

Ann Mahoney, head of personal injury at M R Law comments: “The insurance industry continues to peddle the myth that fraudulent claims are out of control to justify the increasing cost of motor insurance premiums. However, there is simply not the data to support their arguments. The wildly inflated claims made by some in the insurance industry are hugely damaging and whilst preventing fraudulent claims remains important, it is nothing like the problem some may suggest”.