Britain’s biggest insurers are conducting secret credit checks on drivers and using data to pinpoint claims hotspots in a bid to hike premiums. These tactics supposedly give the firms more detailed information about what kind of driver you are. But increasingly they threaten to push up prices to even more eye-watering levels. The tricks are revealed as fears grow that perfectly valid insurance claims are being kicked out simply based on a gut feeling that drivers are lying about claims.It has prompted the independent ombudsman to issue a strong warning.

Insurers have hiked premiums massively over the past decade. Figures from the AA show the average third party insurance policy has jumped from £362.80 in 2004 to £1,161.77 today — a 220 per cent leap. The average comprehensive policy has more than doubled from £411 in 2004 to £844 today. But insurers are desperate to find ways to rake in more cash. They are faced with an estimated £4.7 billion gap in their profits because strict new rules will ban them from taking kick-backs of up to £800 a time by passing accident victims’ details to ambulance-chasing law firms.....Read more here: Why the poor will pay more than the rich for car cover