A DARWEN councillor is questioning why insurance premiums are rocketing despite record crime lows.

Coun Roy Davies, who represents the Sudell ward, has raised the issue after noticing year on year increases for home insurance in the BB3 postcode area.

Local independent insurance brokers say fraudulent and exaggerated claims due to the recession are part of the problem - as is the link to car insurance and crash for cash scams.

Coun Davies said: “Crime has fallen in my ward more than 60 per cent in the past five years and there are record lows around the town according to the police.

“So why are we having to fork out more and more when the area is apparently becoming much safer?

“Insurers need to recognise that having a BB3 postcode is not a bad thing. You mention you live in BB3 and the premium goes up, even doubles, but it needs to start coming down to reflect what’s really going on.

“We have 50 very successful gated back alleys now and the police are doing a good job.”

Fida Minhas, 42, who has run Minhas Insurance Brokers in Blackburn for 14 years, said: “We have experienced claims for false break-ins reporting stolen items and building damage which is overstated. We believe this is due to unemployment.

“At the moment this is causing real problems and the nine out of 10 genuine people are suffering.

“Each claim should be investigated because some people’s premiums are going up by 100 per cent. Unfortunately it is nothing to do with lower crime rates.”

David Millar, of David Millar Insurance, said: “Theft is only part of the premium. The majority of claims we get through are accidental damage when someone wants a new TV or carpet.

“They always seem to be exaggerated, but this has been going on for a long time.

“People in Darwen should shop around because some companies may have decided to mirror home insurance with car insurance because of fraud in the area and are pricing themselves out of the market.”