POLICE swooped on several homes across Huddersfield as part of a so-called ‘cash for crash’ probe.

Four men aged between 21 and 35 were arrested yesterday on suspicion of offences of conspiracy to defraud, deception and money laundering.

One 32-year-old woman was arrested on suspicion of conspiracy to defraud and money laundering.

The raids took place during the day in Huddersfield, Dewsbury and Blackburn. At one incident in East Street, Lindley – believed to be related to the investigation – two police cars, a video van and a police dog van were called in.

They were seen by parents and children on their way to the nearby Lindley junior and infants schools. Police also raided a house on Blackmoorfoot Road, in Crosland Moor.

So-called ‘cash for crash’ has become an increasing problem in the UK in recent years and has caused car insurance premiums to soar.

The scam involves gangs or individuals staging accidents to gain money fraudulently from insurance companies.

The incidents involve a vehicle – often an old car or van which may have had the bulbs removed from the rear brake lights – which stops suddenly and deliberately, causing the vehicle behind to crash into the rear end.

The owner claims for repairs to the damaged vehicle, which may be a write-off, and the occupants all make claims for whiplash injuries, often through no-win-no-fee solicitors.

The Association of British Motor Insurers (ABM) claims that insurers uncovered £410m worth of fraudulent motor claims during 2009.

And the average cost of a comprehensive motor insurance policy has soared by 30.9% during the past year, according to AA Insurance. This was the biggest rise since they began monitoring the cost of insurance 16 years ago.

AA Insurance spokesman Ian Crowder said: “Cash for crash, operated by both organised gangs and individuals, has become a real issue for the insurance industry.

“These make a significant dent in insurance profits as well as causing a significant increase in motor insurance premiums.

“We have twice as many whiplash injuries in Britain as in any other European country, yet we have the safest roads. Something is going on and that is cash for crash.”

From January next year a new dedicated police task force will deal solely with insurance fraud.

It has been set up with £4.8m from the insurance industry and will operate nationally, but be run by the City of London police.

Mr Crowder added: “We think it will very quickly pay for itself in terms of identifying and dealing with insurance fraud.

“It is very sad that some people think insurance is there to be taken advantage of to the cost of honest people like you and me.”

Yesterday’s raids in Huddersfield coincided with a warning from a senior Scotland Yard police officer.

Det Chief Insp Nick Chalmers, head of the Met’s Traffic Unit investigations team, said: “There are a growing number of apparently induced collisions.

“These claims are fuelled by greedy solicitors who operate a no-win, no fee system.

“When a claimant gets £1,500 for whiplash, the solicitor will get anything between £6,000 and £9,000.’’

Last month two Burnley men, Rezwan and Rehan Javed received jail sentences after being found guilty of making almost £1m through their cash for crash frauds.

Another member of the gang, Mohammed Patel, was jailed after admitting being the driver in more than 90 crashes.