Van Insurance - Auction price increase could affect van insurance policyholders

Auction price increase could affect van insurance policyholders

Van insurance policyholders could find it difficult to pick up a car at auction in the future due to increasing costs.

This is because the RMI Society of Motor Auctions (SMA) has stated that auction houses will be putting up their prices in order to accommodate economic pressures.

According to SMA head Louise Wallis, such low costs are only sustainable when turnover is high. She added that the credit crunch this year is also partly to blame.

"Energy and business rates have both increased, as has the cost of insurance, labour and consumables. The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins," commented the official.

Meanwhile, motoring website Easier has cited esure research which recently found that 64 per cent of motorists in the UK will be looking to buy a used car rather than a new one next time they make a change.Copyright Performance Direct News

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