Source: Moneyhighstreet.com

Car insurance adjustments add to cost of using car scrappage scheme

By Diane Ray. Published on June 19, 2009 This post currently has no comments.

Whilst the car scrappage scheme seems to be having some impact on new car production, many car insurance companies are cashing in and charging high mid-term adjustment fees, hitting those scrapping and swapping their car.

Car insuranceThe SMMT (Society of Motor Trade Manufacturers and Traders) has today announced that car production is down again but the drop in May was the smallest of the year so far.

So whilst the outlook remains difficult there is some sign that the car scrappage scheme is lifting the volume of new car sales.

However, those participating in the car scrappage scheme are, according to uSwitch.com, largely incurring significant ‘admin’ fees for making changes to their car insurance policies as they move their insurance from the old to the new car.

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