Of the £1.9 billion worth of undetected general insurance claims per year, £350 million is motor related – adding an average of £44 to each insurance premium.

Accident management company Accident Exchange says that its own Asset Protection Unit (APU) prevented insurers having to pay out in excess of £5 million on bogus motor insurance claims last year - the largest totalling £103,000 in damages and costs.

The APU team consists of former police officers and forensic data and behavioural analysts using an in-house developed software platform.

This allows it to highlight suspect claims and possible fraudulent activity. 

Steve Evans, chief executive of Accident Exchange, said that APU is "denting the criminal practices of organised gangs and individuals to the betterment of all of the law-abiding motorists who pay insurance premiums in good faith".

Just last week, a man was convicted of perverting the course of justice after his DNA was found on an airbag.

He had originally claimed that the crashed car had been stolen in order to escape a drink driving charge. 

Only nine out of the 31 major four-seater car manufacturers are currently meeting EU emissions targets, according to a report.

Clean Green Cars says that only Fiat, Citroen, Toyota, Seat, Lexus, Mini, Alfa Romeo, Peugeot and Hyundai have average emissions for their new vehicles under the 130 g/km of CO2 limit set by the EU.

In 2012, only the lowest polluting 65 per cent of vehicles in each manufacturer's range have to meet this target, but full compliance must be achieved by 2015.

However, Clean Green Cars is frustrated that this rule does not apply for manufacturers that sell fewer than 300,000 cars in the EU and for manufacturers that make heavier cars, which have a higher limit – currently 143 g/km of CO2 for Mercedes, for example.

"The EU is fond of quoting '130g/km of CO2 by 2012', but this is simply not the case," said Clean Green Cars in a statement. 

Rolls-Royce owners are increasingly adding their own twist to their purchase, by asking for unusual modifications to be made to their vehicles.

In 2011, 56 per cent of Rolls-Royce Ghost models sold featured bespoke modifications, including champagne sets, cigar humidors and picnic cabinets.

As well as these unusual requests, custom paint jobs were a popular choice for new owners. 

In the UK, which is the third largest market for Rolls-Royce cars, the proportion of Phantom-family cars sold with modifications rose to 88 per cent in 2011, up from 60 per cent in 2005.

Torsten Muller-Otvos, CEO of Rolls-Royce, said: "It is always our goal to exceed our clients' highest expectations and fulfil their innermost desires.

"With highly bespoke Phantom and Ghost models, we are able to achieve this."

Rolls-Royce cars are owned by a number of celebrities, including footballer David Beckham, who has just put his Phantom Drophead Coupe up for sale for $400,000 (£256,000), according to MSN. 

German car manufacturer BMW has been road testing a car that can drive itself.

In "highly-automated driving mode", the driver is able to take his hands off the controls and sit back while the 5 series BMW regulates its own speed and direction.

The automated system utilises four different sensor types: radar, camera, laser scanning and ultrasonics.

After work on the test track, the team behind the device has been testing it on autobahns - the German equivalent of a motorway - and has had to develop complex software to deal with the presence of other vehicles.

Dr Nico Kaempchen, project manager for Highly Automated Driving at BMW Group Research and Technology, said: "In real traffic you keep getting into new situations that you have never thought of before.

"Our main challenge was to develop algorithms that can handle entirely new situations."

The company hopes to use what it has learnt to develop other systems, such as a traffic jam assistant. 

Only nine out of the 31 major four-seater car manufacturers are currently meeting EU emissions targets, according to a report.

Clean Green Cars says that only Fiat, Citroen, Toyota, Seat, Lexus, Mini, Alfa Romeo, Peugeot and Hyundai have average emissions for their new vehicles under the 130 g/km of CO2 limit set by the EU.

In 2012, only the lowest polluting 65 per cent of vehicles in each manufacturer's range have to meet this target, but full compliance must be achieved by 2015.

However, Clean Green Cars is frustrated that this rule does not apply for manufacturers that sell fewer than 300,000 cars in the EU and for manufacturers that make heavier cars, which have a higher limit – currently 143 g/km of CO2 for Mercedes, for example.

"The EU is fond of quoting '130g/km of CO2 by 2012', but this is simply not the case," said Clean Green Cars in a statement. 

Parents have been advised to use rear-facing car seats by a report that claims they are five times safer than forward-facing ones.

The study by Motors.co.uk revealed that parents in the UK have a lack of knowledge about the facts and prompting the website to call on the government to raise awareness about the subject.

Motors.co.uk said: "Despite numerous studies stating that rear-facing car seats are up to five times safer for children, our research exposes a shocking lack of awareness, information and availability of rear-facing car seats in the UK," the Daily Mail reports.

In Scandinavian countries parents are advised that their child should be kept in a rear-facing seat until the age of four or within the "optimal" weight range of 16-25 kg.

However, of the parents Motors.co.uk surveyed, only 30 per cent were aware that such seats were available for children of this age. 

Unemployed drivers could pay as much as 63 per cent more for their car insurance, an investigation has revealed.

In research conducted for the BBC, the companies approached quoted between 23 and 63 per cent more for an unemployed office worker than an employed one.

Explaining the discrepancy, Ian Crowder from the AA told the BBC that unemployed drivers were seen as a greater risk than employed drivers.

"Unemployed people are likely to be distracted because of their circumstances, likely to be driving along unfamiliar roads and attempting to find specific addresses in search of job interviews," he said.

However, Martin Lewis of MoneySavingExpert.com hit out at the findings, calling them "scandalous", and said that it was wrong of companies to charge more for people who are already under financial strain.

With the UK's unemployment rate continuing to rise and some 2.68 million people now out of work, according to the Office for National Statistics figures, there are likely to be many more people facing an insurance premium rise. 

More than 7,200 Britons were arrested for driving under the influence of alcohol or drugs over the festive period, according to new figures.

A total of 157,000 drivers in England and Wales were tested between December 1st and January 1st as part of a nationwide crackdown on drink- and drug-driving.

The Association of Chief Police Officers (Acpo), which published the figures, revealed that young drivers had the highest rate of offending at 5.7 per cent, compared with four per cent of over-25s.

Neil Greig, of the Institute of Advanced Motorists, claimed that more should be done to educate young motorists about the dangers of drink-driving.

"Our research shows that half of young drivers don't know how much they can drink and still be under the limit, so the message is not getting through to them," he said.

"This suggests that lack of education and confusion over safe limits in today's drinking culture of huge glasses and ever changing alcoholic mixes may be a key factor in drink-driving, especially for this age group."

Police officers from 43 forces tested drivers at all times of the day and night during December.

Rolls-Royce owners are increasingly adding their own twist to their purchase, by asking for unusual modifications to be made to their vehicles.

In 2011, 56 per cent of Rolls-Royce Ghost models sold featured bespoke modifications, including champagne sets, cigar humidors and picnic cabinets.

As well as these unusual requests, custom paint jobs were a popular choice for new owners. 

In the UK, which is the third largest market for Rolls-Royce cars, the proportion of Phantom-family cars sold with modifications rose to 88 per cent in 2011, up from 60 per cent in 2005.

Torsten Muller-Otvos, CEO of Rolls-Royce, said: "It is always our goal to exceed our clients' highest expectations and fulfil their innermost desires.

"With highly bespoke Phantom and Ghost models, we are able to achieve this."

Rolls-Royce cars are owned by a number of celebrities, including footballer David Beckham, who has just put his Phantom Drophead Coupe up for sale for $400,000 (£256,000), according to MSN. 

German car manufacturer BMW has been road testing a car that can drive itself.

In "highly-automated driving mode", the driver is able to take his hands off the controls and sit back while the 5 series BMW regulates its own speed and direction.

The automated system utilises four different sensor types: radar, camera, laser scanning and ultrasonics.

After work on the test track, the team behind the device has been testing it on autobahns - the German equivalent of a motorway - and has had to develop complex software to deal with the presence of other vehicles.

Dr Nico Kaempchen, project manager for Highly Automated Driving at BMW Group Research and Technology, said: "In real traffic you keep getting into new situations that you have never thought of before.

"Our main challenge was to develop algorithms that can handle entirely new situations."

The company hopes to use what it has learnt to develop other systems, such as a traffic jam assistant. 

José Manuel Barroso, president of the European Commission, will today (January 24th) launch a fold-up car that could revolutionise city driving and provide a solution to parking problems.

The two-seater vehicle made by Hiriko Driving Mobility is powered by an electric motor and a four-wheel drive system and is capable of folding up to just two-thirds the size of a Smart car. It is also equipped with a high-tech information system.

It is being developed by a Spanish-US consortium consisting of automotive group Afypaida, centre for innovation Denokinn and the prestigious Massachusetts Institute of Technology (MIT).

MIT researcher Ryan Chin says that the car represents "mobility on demand" and is very environmentally friendly.

"Hiriko's technology and green footprint is five times better than you find in today's Smart cars," he told the Telegraph.

The consortium has announced that "several" European and American cities will be used to trial the Hiriko later this year.  

An initiative to prepare the UK for the commercial roll-out of hydrogen powered vehicles has been launched by the government and 13 organisations.

The new UKH2Mobility programme is backed by three government departments and firms from the utility, gas, infrastructure and global car manufacturing sectors.

The group will evaluate the potential for the widespread use of hydrogen as fuel in ultra-low carbon vehicles across the UK before developing an action plan for an anticipated roll-out to consumers within the next two to three years.

It also aims to consider how much investment would be required to roll out hydrogen refuelling infrastructure across the UK in a bid to make fuel cell cars more attractive to Britons.

Business minister Mark Prisk underlined the benefits of hydrogen fuel cell electric vehicles.

He said: "Hydrogen fuel cell electric vehicles are increasingly being recognised as one of the viable options as we move to a lower-carbon motoring future.

"They are highly efficient, can be fuelled in minutes, travel an equivalent range to a conventional combustion engine, and have zero tail-pipe emissions."

The government is investing £400 million to support the development and deployment of low and ultra-low emission vehicles as it looks to reach its target of ensuring road transport is largely decarbonised by 2050.

Despite the UK enjoying a mild winter, the unpredictability of the British weather means drivers can not risk taking to the road without making the required preparations.

One of the first things British motorists should consider is whether they actually need to go out at all, as short journeys may not be necessary.

However, some trips are simply unavoidable so Brits should make sure their chance of breaking down is significantly reduced by taking their car to a garage to get serviced. Although this will result in some initial repair costs, the bill will be far less than for a breakdown at a later date. 

Caroline Holmes, spokeswoman for the Institute of Advanced Motorists, underlined the importance of maintaining speed at a moderate level in icy and cold conditions to ensure that drivers can safely bring their car to a stop. 

She said: "Stopping distances are increased by up to four times in the wet and ten times on ice and snow."

One way in which to reduce stopping distances during the big freeze is to fit winter tyres, which are much better suited to dealing with the cold and icy conditions than standard tyres as the silicon compounds are more flexible and therefore offer reduced stopping conditions.

If drivers do not wish to invest in cold weather tyres they should at least check that their tyres have sufficient tread depth to deal with adverse driving conditions. Under current regulations, tyres should have a minimum tread of 1.6 mm, though some experts have argued that as much as 3mm is required for driving during dangerous winter conditions.

In addition to lowering the risk of skidding, tyres with sufficient tread and pressure will help increase fuel efficiency as motorists will not be forced to put their foot down as hard on the accelerator.

Ms Holmes also emphasised the importance of keeping your windscreen clear to lower the risk of an accident.

She said: "In a UK winter you are more likely to encounter wind and rain, so make sure your windscreen wipers are in good condition and that you clean the inside of the windscreen and all of your windows regularly."

Autoparts provider Comline offers winter wiper blades suitable for a range of different car brands including Audi, BMW and Toyota, allowing a wide variety of consumers and garage owners to benefit from the industry-leading wipers.

One common mistake made by many motorists in the UK is to leave their car unattended as they keep their motor running to clear frost from their windscreen. Even if this is only for a few minutes, opportunistic thieves will quickly take advantage of such a situation.  

If the worst case scenario does occur and motorists do break down in the winter, Ms Holmes advised drivers to pack an emergency kit featuring "a warm coat, high visibility jacket, some food and water, a good pair of boots, de-icer and scraper, a torch, a spade and a mobile phone with a well-charged battery".

Car insurance premiums soared by more than 15 per cent over the past 12 months, according to new research.

The AA has published its British Insurance Premium Index which shows that UK motorists paid £971 for comprehensive coverage on average in the fourth quarter of last year, a rise of 15.3 per cent from the same period in 2010.

Young drivers continued to be the hardest hit by rising premiums, with the average motorist under the age of 22 paying £2,497 for their insurance, representing an annual rise of 10.91 per cent.

"I expected a much smaller rise, especially following the small fall in premiums during the third quarter of 2011," Simon Douglas, director of AA Insurance, said in a statement.

"It is wrong that injury claims are rising while the number of accidents on Britain's roads is falling."

Drivers in the north-west and London paid the highest premiums, while Scottish motorists benefitted from the cheapest policies.

With the New Year just beginning, many drivers across the UK may be considering upgrading their car for a more modern and economical model.

However, with the majority of us still paying for Christmas, it may be prudent to consider ways in which to extend the lifespan of your current vehicle.

There are a number of benefits to keeping your car for as long as possible, with monthly costs likely to be lower even when taking into account the higher repair costs associated with an older car.

Unless you have opted to take out a long-term finance deal, it is possible to be payment-free after around four or five years. Should you take sufficient care of your old car, any repair costs are likely to cost far less than any loan repayments for another vehicle.

Furthermore, insurance costs are likely to be lower as premiums tend to fall pretty steadily as your car ages.

Merryn Somerset Webb, MoneyWeek editor-in-chief, pointed to the sharp loss in value associated with buying a new car as another key reason for keeping your older motor.

"A new car loses a fifth of its value as soon as it leaves the forecourt and will be worth a third less than its list price within three months," she said.

"On a really expensive luxury car you could be losing £100-plus a day. This doesn't make any sense at all. Why would anyone throw that kind of money away just to drive a brand-new car?"

There are, of course, a number of advantages to buying a new car, one of the principal benefits being that you will be the first owner of the car. This will mean that you can choose the exact car specification to make sure it suits you and your driving style.

Maintenance costs will also be lower as new cars will not require an MOT for three years, while a vehicle straight off the showroom floor with no mileage is less likely to break down than an old banger. Moreover, a manufacturer warranty will be included when buying a new car.

For those wondering where to go to buy their new car, Autotrader magazine recommends cutting out the dealer and going online to find some "real bargains".

"There are many websites who can source you a brand new car in the specification you want while giving you huge savings," it said.

"Some buyers like the reassurance of being able to deal with someone face-to-face, but cars will be supplied with a full warranty covering you if something should go wrong after you've taken delivery."

Brits who are undecided on whether to buy a new car could delay the purchase and keep their current vehicle going for as long as possible to save up for their dream model.

Young motorists who take additional driving lessons to improve their safety on the roads should be rewarded, according to the Institute of Advanced Motorists (IAM).

With male drivers aged between 17 and 20 paying more than three times the average insurance premium and their female counterparts facing insurance bills twice as high as the national average, many young drivers are keen to reduce their insurance premiums. 

A recent survey from the IAM showed that 74 per cent of novice drivers would take further driver training if it saved them money on their car insurance and the body is calling on the government to introduce a reward scheme for young motorists who want to improve their driving skills

IAM chief executive Simon Best claimed the simplest way to reduce insurance premiums is to prevent accidents.

He said: "This is especially true for young male drivers who are most at risk of being involved in an accident. We need to start rewarding good drivers by encouraging further driver training through cheaper insurance."

The IAM's calls come ahead of the Transport Select Committee's report on the cost of motor insurance, which is due to be published today (January 12th).