BLACKBURN has been named the most expensive postcode in the region for car insurance by

Car insurance rates in the town have risen by 6% according to research carried out by the comparison website.

The average premium is now £1,027, a £59 increase in the last 12 months.

For the North West as a whole, the average is now at £790, following a £27 increase over the last year.

Councillor for environment in Blackburn, Jim Smith, was shocked to hear the rate for Blackburn had taken such a huge leap.

He said: “It’s all based on claims as the data is based around the highest rate of claims in one place.

“In an area where there may be more claims, the car insurance is higher because companies feel that there is a risk in that town.

“But, all people need to do is shop round, that’s the best way to find the cheaper options.

“Do not just renew your insurance without checking, because you can definitely get cheaper quotes.

“Individuals that do not claim can find cheaper car insurance by shopping around.”

The second highest premiums were in Blackpool with £765.

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Steve Fletcher, of, said: “Our car insurance price index reveals there is a lot going on within the insurance industry which is having a tug-of-war effect on prices for new and existing customers.

“But there are also fewer younger drivers on the road, and more people car-sharing.”

The data was released following an interim report by the FCA, which exposes ‘dual pricing’ practices which inflate premiums for loyal customers who renew year-after-year, many of whom are vulnerable.

The research also showed that people stay loyal with the hope that they will be rewarded, however, this was usually not the case.