Car insurance: Scrappage scheme 'is a green initiative'

Friday, 02 October 2009

Drivers who were hoping to save money by taking advantage of the scrappage scheme and then purchasing low cost motor insurance need not worry about the eco credentials of the cash for bangers initiative, if the comments of one industry group are anything to go by.

According to Clean Green Cars, criticism of the programme - on the grounds it is an expensive way of cutting CO2 emissions - is misinformed.

Spokesperson Jay Nagley commented: "While not perfect, the extension of the scrappage scheme should be welcomed."

Clean Green Cars explained some organisations have said the initiative subsidises people who would have eventually bought the same auto anyway.

However, the company stated the vehicles being traded in under the scheme would not usually be exchanged for a brand new set of wheels.

It also pointed out those taking part are generally opting for small cars with much lower CO2 emissions than the ones being scrapped.

Finally, the firm stated the initiative pays for itself because the 15 per cent VAT on new autos covers the £1,000 subsidy being provided by the government.

Meanwhile, participants may find some of the best deals on budget car insurance are available online.

Written by Rebecca Mellor

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