Modified car insurance: Scrappage scheme 'a good thing'

It has been suggested that the car industry has benefited from the scrappage initiative in recent times.

The comments of Sue Robinson, director at RMI, may find favour with consumers who are on the lookout for car insurance.

She said: "Scrappage going forward could be an important stimulus to the new vehicle market, particularly at a time when consumers are under pressure because of an increase in VAT."

Ms Robinson also noted that the programme has been an important way of stimulating the automotive industry in the UK.

According to Sainsbury's Finance, about 3.7 million people in Great Britain intend to purchase a second-hand car before the end of February 2010 – 18 per cent less than the figure recorded between March and August 2009.

Meanwhile, the Society of Motor Manufacturers and Traders recently found that new car registrations were up 57.6 per cent in November – compared with the equivalent month in the previous year.

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