New South Wales police have charged a Sydney man over allegations he orchestrated a series of planned vehicle collisions to secure insurance payouts.
According to 9News, authorities claim the 66-year-old – from Lakemba – was linked to 16 separate incidents involving 45 vehicles over a three-year span in the Canterbury Bankstown region.
Investigators allege that false identities were used to purchase third-party insurance for a vehicle, which would then be deliberately involved in crashes with parked cars.
Insurers reportedly paid out a total of $390,480 in claims linked to the incidents.
The man was arrested at Sydney Airport and taken to Mascot Police Station, where he was charged with two counts of dishonestly obtaining financial advantage by deception.
He was granted conditional bail and is due to appear at Bankstown Local Court.
The case emerges amid broader cost pressures in the motor insurance sector.
According to the Insurance Council of Australia (ICA), average comprehensive premiums have risen 42% since 2019, with the typical annual policy now costing more than $1,050.
The ICA attributes the increases to a combination of higher repair costs, supply chain issues, and labour shortages, which have driven up claims expenses.
Fraudulent claims, such as staged accidents and exaggerated damage reports, remain a notable expense, with the ICA estimating they cost the industry $560 million in the past year.
Separate research from comparison service iSelect suggests that some policyholders are intentionally misrepresenting details to lower their premiums.
In a survey of more than 3,000 drivers, 6.8% admitted to providing incorrect information on their applications.
Commonly misrepresented details included where a vehicle is parked (31.4%), annual distance driven (25%), and usage type (17.2%).
The study found younger drivers were more likely to report such behaviour, with 15.4% of respondents aged 18 to 24 admitting to it, compared with 1.4% of those aged over 65.
By state, the highest reported misrepresentation rates were in New South Wales (7.9%), Victoria (7.3%), and Queensland (6.3%).
Adrian Bennett, general manager for general insurance at iSelect, said providing false information when applying for a policy could result in a claim being denied or the policy being cancelled.
“While it may be tempting to misrepresent details such as your car’s parking location or annual mileage to lower insurance premiums, doing so can have serious consequences that may end up costing you more in the future. If an insurer discovers false information, they may cancel your policy or deny a claim – leaving you financially responsible,” he said.
