Car insurance: Car purchases set to rise

Sunday, 04 April 2010

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There will be a sharp increase in the number of people making changes to their car insurance policies in the near future, as vehicle purchases are set to rise by almost half.

According to the Sainsbury's Finance Car Buying Index, in the six months to August the number of people planning to buy a new, used or pre-registration car is 47 per cent higher than in the six-month period from September 2009 to February this year.

Collectively, car insurance holders expect to spend GBP49.1 billion on new motors, a rise of 25.9 per cent on the previous six months.

Steven Baillie, head of loans at Sainsbury's Finance, said that recent industry figures have painted an optimistic picture, particularly in the used car sector.

"The decline in new car sales in 2009 seems to have generated a better market for second-hand sellers.

The likelihood is that many people will now be surprised at how much they can get for their existing car and will be looking to upgrade," he added.

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