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IFB: Car insurance scams reach all-time high

Published: 23 August 2010

There has been a rise in the number of motorists staging accidents to claim on other people's car insurance, it has been revealed.

Figures from the Insurance Fraud Bureau (IFB) show around 3,000 of the collisions on the country's roads last year were staged, the BBC reports.

This cost insurance companies around £350 million last year, which in turn leads to increasing costs for other drivers.

Glen Marr from the IFB told the news provider: "Fraud adds £44 to the insurance premium of every motorist - no matter what no claims bonus or safe driving record he or she may have."

Hotspots for this sort of activity include Birmingham, London, Liverpool, Blackburn and Leeds, the statistics revealed.

The IFB revealed in recent weeks that throughout July, it received 244 reports of fraudulent activity, with August so far showing no signs of marking an improvement on this figure.