A FORMER MP has spoken out over the cost of motor insurance in the BB postcodes.

Graham Jones, who is running again to represent Hyndburn and Haslingden at Westminster, has commissioned research which indicates the high number of claims management companies in the North West have helped boost the cost of vehicle premiums.

The House of Commons Library study shows in the North West costs are 10 per cent higher than London and double those in Scotland, the cheapest area.

In the Granada TV area covering the region, motor premiums were £887.35 a year, the most expensive in the country.

It also shows the North West has the highest number of claims management companies operating and Scotland the lowest.

North of the border motor premiums are just £458.74 annually and the number of claims involving bodily injury, including whiplash are just 15 per cent against 40 per cent in the North West and 25 per cent UK-wide.

The results of Mr Jones' research have been welcomed by former Blackburn MP Jack Straw who has long campaigned to reduce high car insurance rates in the BB postcode covering Blackburn, Burnley, Rossendale, Accrington, Pendle and the Ribble Valley

He said: “This is further evidence as to why motorists in East Lancashire pay too much for their insurance

“The role played by claims management companies in inflating claims and premiums needs to be looked at.

“It is scandalous that aggressive claims management have been uncovered as responsible for the North West having the highest car insurance premiums in the UK.

“This is of particular concern in the BB postcode area, which includes Hyndburn, where insurance premiums have been unreasonably high for many years.

“The statistics uncovered by House of Commons highlights this problem.

“The research I commissioned shows claims management companies are adding as much as double the price of car insurance premiums compared with Scotland.

“Jack Straw and I have long campaigned against motorists being ripped off. I will be taking this up at the earliest opportunity.

“It is time this industry was more regulated and hard pressed East Lancashire families given a fair deal.”