Premiums are soaring as honest motorists foot the bill for the ‘fraud epidemic’ sweeping the country, which has lead to insurers secretly to blacklist certain postcodes.

Many car owners have seen a rise of up to forty per cent in insurance premiums over the past year, insurers are blaming an increase in fraudulent claims

An investigation has shown blacklisted areas of the UK where concentrations of fraudulent activity have taken place. These claims have lead some insurance companies to flat-out refuse some motorists insurnace in some areas.

The most popular fraudulent incidents include staged accidents, bogus injury claims and fronting, where parents claim they are the main driver for heir child’s car.

Top ten areas for fraudulent claims; Birmingham, Liverpool, Bradford, East London, Manchester, North London, Bolton, Blackburn, Southall and Oldham.

Birmingham tops the list with a staggering one in ten suspicious claims, with B8 – east Digbeth being one of the worst spots followed by B15 – Edgbaston

James Heath, head of counter fraud strategy at Keoghs, says: ‘We are now seeing what can reasonably be described as a fraud epidemic across the UK.

‘It is clear from these results that fraud is no longer restricted to the country’s most heavily built-up areas.’

See how your postcode affects your car and home insurance at www.thisismoney.co.uk/postcode