MOTORISTS living in parts of Blackburn are experiencing a ‘postcode lottery’ for car insurance because of ‘crash for cash’ gangs.

People living in the BB1 postcode area are even being declined insurance because of the amount fed-up companies are paying out in bogus claims.

Lee Cych, 36, of Wasdale Avenue, Shadsworth, and his wife Melanie, 38, were looking to get a new quote from Swinton to insure their Renault Megane diesel saloon car, and were astounded to find their quote had jumped nearly 400per cent, from £395 last year to £1,500.

This was despite changing their car from a petrol Renault Scenic, which is in a higher insurance bracket, and having eight years no claims bonus.

Lee, a carer at a Lancashire children’s home, said: “Times are hard as it is. We’ve got two young children and decided to get a cheaper car, but we were astounded at the new quote.

“When I questioned the amount, I was told that Blackburn is among the worst places in the country for insurance prices.

"It is a slap in the face for a family man such as me. People are making claims they shouldn’t and it is the people who have never claimed that are being punished.”

According to Phil Fogarty, 34, a director of Fogartys Insur-ance Services, Blackburn, the situation is the worst he’s ever seen it.

He said ‘crash for cash’ gangs operating in the BB1 postcode area were among a number of factors adding to massive increases in car insurance quotes.

He said the knock-on effect was that people who rely on their cars, but can’t afford thousands of pounds in insur-ance, were breaking the law by not buying a policy.

Mr Fogarty said: “The North West is particularly bad, Blackburn even more so, and the BB1 post code is in the top three in the country with Bradford and Bolton.

“Insurance companies are very postcode driven and BB1 is one of the most expensive for quotes in the whole country.

“What they are telling us brokers is that the money going out in claims is 20per cent more than money coming in through premiums.

"We’ve found that in BB1 sector lots of companies are pulling out, purely because it is not profitable.

“It can mean an 18-year-old living in Audley Range, driving a 1.1litre Citroen Saxo, can be quoted £4,000, or not even made an offer. ‘Crash for cash’ gangs are a big part of the problem.”

According to the Insurance Fraud Bureau, ‘crash for cash’ organised fraudsters have staged 30,000 accidents in the last year, an all-time high. It adds £44 to the premium of every driver in the country.