Demand for car insurance for young drivers may rise, suggests Sainsbury's Finance study

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Demand for car insurance for young drivers may rise, suggests Sainsbury's Finance study

Mon 23rd Aug 2010

A study by Sainsbury's Finance suggests that demand for car insurance for young drivers may be about to increase.

The organisation has predicted that 7.68 million people will purchase a new vehicle between September 2010 and February 2011.

This is 49 per cent up on the amount recorded during the same period a year earlier and the highest figure since 2007.

Steven Baillie, head of loans at Sainsbury's Finance, noted that this could be partly due to the upcoming VAT increase, as drivers may be keen to beat the rise by purchasing a car beforehand.

He added that many of those interested in buying a car are looking for a brand new motor, rather than a used vehicle.

"It would suggest that the end of the Car Scrappage scheme has not led to the feared drop-off in the number of customers wanting to buy a new car," Mr Baillie commented.

This comes after research by Sainsbury's Car Insurance found that one in nine motorists could be risking higher premiums and prosecution by using a mobile phone at the wheel.

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