Car insurance customers hold back

Tuesday, 16 November 2010

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Car insurance customers appear to have been less active in the new car market, according to the latest industry figures.

Registrations for vehicles declined by 22.2 per cent in the month of October, falling to just over 130,000 units, according to the Society of Motor Manufacturers and Traders (SMMT).

The number of registrations is still higher than it was in January, standing at just below the 1.8 million mark.

Economic factors, such as the ending of the car scrappage scheme, are likely to be among the main reasons motor insurance holders are more reluctant to buy new cars.

SMMT chief executive Paul Everitt said: "The industry expects the coming months to be challenging.

"There was a significant fall in October's new car registrations, reflecting the impact of the Scrappage Incentive Scheme at this time last year."

He added the sector expects slow but steady economic growth feeding through to improved confidence and demand from car insurance customers in 2011.

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