Extended Car Scrappage Scheme Will Help Cheap Women’s Car Insurance

Cheap women’s car insurance could get even cheaper for women who take advantage of the car scrappage scheme, which has been extended by the Government to cover an additional 100,000 vehicles.

Introduced in May 2009, the car scrappage scheme allows people who own a car over 10 years old to scrap their old vehicle and receive a £2,000 reduction on the price of a new car. The subsidy is split between car manufacturers and the Government, contributing £1,000 each.

Although the scheme was initially ridiculed, the popularity of the scheme has meant that new car sales have risen for the third month in a row in September 2009, according to the Society of Motor Manufacturers and Traders (SMMT). Nearly 368,000 new cars were registered in September 2009, an 11 per cent increase from 2008, the SMMT has claimed.

The bonus of the car scrappage scheme, apart from the money off you will receive on a brand-new car, is that newer vehicles have much better rates for cheap women’s car insurance. Cars which are 10 years old are much more likely to have a fault and are therefore more likely to attract higher insurance premiums.

Cheap women’s car insurance companies also know that newer cars are designed with more safety features such as airbags and side-impact bars to absorb the shock of an impact, which will protect a driver in the event of an accident. Drivers will therefore make fewer claims driving safer cars as they are better protected and suffer fewer serious injuries.

The £300 million scrappage scheme was due to end in November 2009 but business secretary Lord Mandelson announced that the Government would add a further £10 million to the collective pot in order to extend the scheme further into next year. An additional 100,000 vehicles will be covered as a result of the extra funding that has been found.

The SMMT are expecting September to have been the busiest month this year as the new “59” plates began service. This could be the first time in five years that car sales peak in a month other than March, traditionally when new plate numbers come in.