| p>Now that Chancellor Alistair Darling has introduced a | | | | Therefore though you may be able to save money on |
| £2,000 vehicle scrappage incentive scheme for | | | | a new car thanks to the introduction of the vehicle |
| drivers to trade in their old cars for newer alternatives, | | | | scrappage scheme, you could find that your monthly |
| what affect could taking up the offer have on your | | | | costs rise significantly due to increased car insurance |
| car insurance? | | | | premiums. |
| There are many economical benefits to driving a new | | | | So if you're driving a new car how can you keep your |
| car. Though the retail price is likely to be higher than a | | | | premiums manageable? |
| used vehicle, new cars will usually require less | | | | The first step is to think about the car you choose. |
| maintenance and be more fuel efficient meaning that | | | | Driving a vehicle with a high performance engine will |
| you will pay less at the pump. However, owning a new | | | | see you penalised. Modifications too are frowned on |
| car is not necessarily a good thing in the eyes of an | | | | by insurers because they can be more difficult to |
| insurer. | | | | repair after an accident and replace in the event of a |
| It could be argued that newer cars are safer than | | | | theft. So stick to a small and conventional vehicle |
| older cars because they are usually more reliable and | | | | where possible. |
| therefore less likely to be involved in accidents, but | | | | From there, take the general steps that all drivers |
| some insurers taking an opposing viewpoint. Newer | | | | should take to reduce their insurance costs. These |
| vehicles are seen by some providers as more of a | | | | include parking in a garage at night, enhancing a |
| threat because they tend to be driven more recklessly | | | | vehicle's security, paying premiums annually and |
| and at faster speeds. They are also a more likely | | | | increasing the voluntary excess, albeit only to a level |
| target for vehicle theft and vandalism. | | | | you can comfortably afford. |