Drivers face an unlimited fine and imprisonment for breaking a major driving law. Road users and motorists can be slapped with an unlimited fine and risk prison time for carrying out fraudulent car insurance practices, it has been warned.

The warning comes after cases have taken a significant rise in the UK, with more than 45,000 scams recorded this year alone. In 2023, insurers detected £1.1billion worth of fraudulent claims, marking a four per cent increase from the previous year.

Mark Allen, the ABI’s Assistant Director, Head of Fraud and Financial Crime, said: “Insurance is there to protect people and businesses should the worst happen. It’s encouraging to see that the industry’s efforts to detect and prevent people from abusing this are working, but there can be no let-up in pursuing insurance fraudsters.

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“Fraud doesn’t just impact victims that fall foul of the scammers, it affects everyone that pays for an insurance policy – with bogus claims pushing up the cost of premiums for all. That’s why cracking down on fraud continues to be a top priority for our industry.”

If a driver is found to be guilty of car insurance fraud, they could face an unlimited fine and up to 10 years’ imprisonment if taken to court. He added: “Consumers also need to remain vigilant to potential scams, and our latest online fraud campaign aims to help everyone to learn how to protect themselves in an increasingly digital world.”

Ursula Jallow, Director at the Insurance Fraud Bureau, stressed the importance of raising awareness about insurance fraud impacts. She said: “We’re collaborating closely with insurers, law enforcement agencies and industry bodies to ensure that we protect the UK public from insurance fraud and scams.”

Detective Chief Inspector Tom Hill from the City of London Police’s Insurance Fraud Enforcement Department stated: “Insurance fraud is not a victimless crime. It increases the cost of premiums for honest customers, while fraudsters who sell fake car insurance or deliberately cause road traffic collisions to claim compensation put innocent motorists at risk.”