Two separate reports have revealed that one in twenty motorists drive without a valid car insurance policy and out of those that do own insurance many have taken to making false claims on their policy to cover debts.

Figures released from the Motor Insurers' Bureau, show five per cent of vehicles on the road do not have proper cover and statistics revealed by Association of British Insurers (ABI) has commented that the number of fraudulent claims in the UK has gone up by 70 per cent in the past year.

Nick Starling, director of general insurance and health at ABI, stated, "Honest customers should not have to pay for cheats, these figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves."

The fraud adds an estimated 140 pounds onto the premium for the honest policy holder.