MOTORISTS and homeowners in Bolton are being hit in the pocket by rising insurance costs, a new survey has revealed.

A car now costs an average £300 more to insure in Bolton than it did when the Automobile Association's survey started seven years ago.

Bolton residents have also paid more to insure their homes since January as premiums rise for the first time in four years, the AA's quarterly report revealed.

AA chiefs say the general increase in home insurance can be blamed on last year's devastating floods.

And they say costs of both car and home insurance premiums will continue to rise in coming months.

The survey reveals April insurance premiums for a four-bedroom detached house in Bolton are priced at approximately £196 - a one per cent rise since January.

Bolton comes 15th in the AA's table of highest home risks across Britain. In July 1994, a middle-aged female teacher would have paid £211 to insure her four bedroom detached.

The figure now stands at £196 and although it is less than in 1994 it represents a rise in current trends and a one per cent rise since January.

Motorists in Bolton are listed in 40th position of the country's most at risk.

A 48-year-old male service engineer would have paid £474 for a years fully-comprehensive cover on his 1.4 litre Rover in 1994.

Today the figure has almost doubled and stands at £804 - again a rise since January.

AA Insurance Services managing director Kerry Richardson said: "Based on the current levels of premium inflation, third-party insurance will have risen by nearly 25 per cent by the end of 12 months.

"The average cost of comprehensive insurance will rise nearly 18 per cent over the same period."

Nationwide, non-comprehensive premiums have risen by over six per cent over the past three months while fully comprehensive policies have risen by over four per cent.

The average yearly premium last April was an average of £523. Today costs have risen by £118 to £641.

Home insurance premiums have risen by 1.62 per cent for buildings insurance and 1.44 per cent for contents.

Mrs Richardson added: "After a period of stability, these premium rises spell bad news for homeowners. In our view, this is the first sign that home insurers are starting to pass on losses from bad weather over winter to their customers.

"We expect further quarterly increases to raise premiums by at least five per cent by the end of the year." Continue