Allegations that motorists are paying excessive premiums following accident insurance claims is gaining momentum, following investigations by an online insurer. Analysis from Swiftcover.com and disclosed to The Daily Telegraph showed that a small number of credit hire firms – companies which buy owners’ details from insurance brokers, bodyshops and damage assessors among others, and then offer not-at-fault motorists hire cars and repairs following an accident – are responsible for inflated costs of up to £200?million a year.

The insurer says that an estimated third of credit hire agencies consistently overcharge for work with submitted bills that are ‘extravagantly inflated’, often by as much as 100% above the market rate.