World Car Insurance Market Shrinks!

The world car insurance market is shrinking as fast as global warming is melting the ice caps
All around the world thoudands upon thousands of new cars sit idly rusting away while the economies sink further into recession, awaitng new owners who are not forthcoming!
Under the old registration system, March and April would normally be manic times for new car registrations and car insurance in insurance brokers and companies offices up and down the country. today those same brokers are reporting that new car business is quiet! Hardly surprising since many of the workers from the car industry that would normally buy these cars are on short time or laid of for months!

The evidence..............

A very quiet Honda plant in Swindon





Ello John Gotta new motor?


Sheerness for Export?


All over the UK cars are sitting in holding areas getting older!
By the time they are sold they will be eligible for our Classic Car Insurance Schemes!

Government Car Scrappage Scheme Has Serious Flaws

New for old! New for old!

You hear the expression a lot in the UK Car insurance Industry, but in the case of the recently announced car scrappage scheme we'd like to inform Mr Gordon Brown, that there is no Genie in a Lamp!

The Government sponsored car scrappage scheme has in our opinion been inadequately thought out and is seriously flawed, the result of which will have a long term detrimental affect upon the classic car market and consequently upon specialist and classic car insurance. More importantly it's going to cost you the public!

All vehicles that are over ten years old, both cars and vans, are eligible for the scrappages scheme which starts next week.
Under the scheme, if you trade in your old motor for a new one, the government puts GBP 1000 of taxpayers money in, and the already struggling UK car industry foots another GBP 1000 of the price of the new car.

So how does this help the UK Car Industry? We think it is seriously flawed for a number of reasons:

We cannot see that such a small percentage amount, even off the price of the cheapest of FOREIGN import cars, of say 25%, will stimulate demand from an already indebted UK public.

Besides why would anyone think of buying a new vehicle when there are so many good deals to be had with pre owned or lease cars?

How would the majority of people who drive 10 year old cars, be able to afford a new one even if with a couple of grand knocked off the price?

How would the majority of people who drive 10 year old cars, be able to afford the car insurance premiums on the new ones?

Why is the scheme going under the green banner when it is going to create more waste?
In case the government haven't noticed the bottom has fallen out of the second hand scrap metal market since China stopped buying.
Are we going to see England's (and Britain's) green and pleasant land turned into fields piled high with scrapped cars. What's so green about that?

The scheme is vunerable and open to fraudulant use by unscrupulous motor traders!

On the good side there should be more spare parts available and the prices should drop for classic car replacement parts.

So what's the Impact of the scrappage scheme on the UK Car Insurance?

Many of the standard all risks car insurers are rubbing their hands in glee at the prospect of the scheme as they see immediate vast profits to be made from the change, at the cost to YOU the British public!

Essentially the car insurers stand to make vast sums of money in two ways when you cancel your policy and take out a new one:

1. When you cancel your car insurance contract mid-term, in the majority of cases you will get short period rates, which means you won't get six months of your premium back, if fact you'll be lucky to get four months!

Bingo Car Insurers!

2. Car Insurance premiums for new cars are going to be more expensive per se.
If the policyholder only had third party cover on his ten year old car, then fully comprehensive car insurance on the new car is going to be possibly five or six times what they were previously paying!

Bingo Car Insurers!

The car scrappage scheme has also posed the insurance industry some very tricky questions when it comes to the question of write-offs or total loss claims.
At the moment claims payouts are usually based upon the value of the vehicle before a write off occurred. But the majority of 10 year old cars which are not sought after classics, are worth less than GBP 2000.
Are we going to see the majority of write-off claimants retain the salvage, as it's worth more than what the car insurance company is offering?

We'd advise all owners of 10 year old cars to think seriously about the personal cost to themselves of entering the scrappage scheme. If you are looking to save money on car insurance you would be well advised to keep the older car, and if you do limited miles each year, check out specialist car insurance and classic car insurance schemes to save hundreds of pounds on premium costs.

Classic Car Insurance - kewego
Classic Car Insurance at the cheapest UK rates from over 100 schemes at http://www.car-insurance.tv

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