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Insurers detected 24,000 fraudulent motor cover claims in 2007 after upping their efforts to catch those who break the law.
The cases uncovered last year accounted for a total of £260 million in fraudulent claims, or £5 million per week, according to the Association of British Insurers (ABI).
Examples of those who faced prosecution and conviction included the owner of a Rolls Royce who claimed £10,000 for the theft of items like hubcaps and a front grille, only for police to find them in his home.
ABI director of general insurance and health Nick Starling said: "Anyone committing insurance fraud is more likely to get caught, risks a criminal record, and will find future insurance and credit harder to obtain and more expensive."
Another case cited by the organisation included a car owner who claimed his vehicle had been stolen when in fact he had pushed it over a cliff in the hope of using an insurance payout to meet hire purchase fees.
The ABI represents the collective interests of the insurance industry and has around 400 UK companies in membership.
