The record rise in motor insurance fraud is due to phantom passengers and fake injuries, according to the Association of British Insurers (ABI).
Each week 865 dishonest motor insurance claims worth £10.4m are being found by insurers.
The figures have been released a week after the ABI launched a new national database to help combat fraud – The Insurance Fraud Register.
Last year 45,000 motor insurance claims were fraudulent, and the savings made by detecting these fake claims totalled £541m.
Shockingly, one motor insurance claim in 14 (7%) is fraudulent.
Director of General Insurance Nick Starling warned would-be fraudsters that insurers would do whatever it took to weed out the cheats.
Starling went on to say that the new Insurance Fraud Register would enable insurers to check for fraudsters, and those found guilty of it would find getting insurance more difficult and more expensive.