The level of property insurance fraud in the UK fell by 38 per cent over 2013 compared to 2012 – that’s according to the Association of British Insurers (ABI).

Property insurance fraud might involve obtaining from an insurer a payment that is worth more than the actual value of destroyed property, or it may involve destroying property that might be difficult to sell and receiving money for it from an insurer. Arson is also often related to property insurance scams.

However, this year’s figures are good news for both property insurance firms and consumers – including many of our property and unoccupied property insurance customers. Insurers have had to deal with fewer fraudulent cases, which in turn is likely to have had a positive effect on customers’ premiums.

But other sectors of the insurance industry did not fare so well. Dishonest car insurance claims helped to push up the overall fraud figure to £1.3bn. Much of this was down to fake car crashes, sometimes referred to as ‘crash for cash’ fraud.

According to the ABI there were 59,900 fraudulent motor claims in the UK last year – a rise of 34 per cent.

The ABI said that more fraudulent claims are being detected than before, contributing to the increased figure.

Speaking on BBC Radio 4′s Today programme, the ABI’s Malcolm Tarling said:

“We estimate that across the country fraud adds £50 a year to the average family’s insurance bill – that’s £50 more than people should be paying.

“This is why the industry is investing over £230m a year in tackling fraud