Industry News from Yes Insurance

Hard-up motorists may be better off trying to secure a more competitive deal on car insurance than taking part in the scrappage scheme, if one group's comments are anything to go by.

The Association of British Drivers (ABD) has suggested the initiative will not necessarily help out individuals who are feeling the effects of the recession.

It claimed people could probably save more money by hanging onto their current model for as long as possible.

The organisation also disputed the fact the programme will improve road safety by removing older more dangerous from circulation.

It stated most people who take the government up on their offer will opt for diminutive models that are not known for providing high levels of protection.

Brian Gregory from ABD said: "The simple fact is if you go for a large Mondeo-sized car, it is far safer than a small car like the Fiesta."

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