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Fraud is one of the main factors driving up the cost of motor insurance, MPs have said.
A report published today the Commons transport committee said wider access to justice should not "provide a licence" to make false personal injury claims under car insurance policies.
In evidence to the MPs preparing the report the Association of Chief Police Officers said there had been 30,000 "staged accidents" in 2009 arranged to enable claims to be made.
Following the publication of the report Louise Ellman, chair of transport committee, said wider access to justice should be welcomed, but warned it has come at a significant cost, with far more personal injury claims being made than in the past.
She said: "The police made plain to the committee that 'staged accidents' are on the increase and that, so far, we have been lucky there have been no fatalities resulting from such incidents.
"That luck may run out unless the insurance industry acts rapidly to help the police target this kind of insurance fraud."
She added: "Consumers are largely unaware of how much money moves around the insurance industry in this way when they make a claim. They deserve to see where their money is going.
"If insurance companies cannot agree a method by which to improve transparency around referral fees, then the Government should step in, with legislation if necessary."
But the Association of British Insurers has accused the committee of ignoring much of the evidence it heard during its inquiry.
Nick Starling, Director of General Insurance and Heath at the ABI, said: "The Committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever- increasing personal injury claims and spiralling legal costs.
"Legal costs alone now add an extra £40 a year to the average motor premium, and motorists should not have to foot the bill for our cost-ridden compensation system."
The committee said the insurance industry should fund a special police unit to help crack down on false car insurance claims.
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