The government’s scrappage scheme has created a vital boost in demand for vehicles, as new car sales fell at their slowest rate for almost a year.

New car registrations fell by 15.7% in June compared with the same month last year. In May, output fell by 43%, with a 55% annual drop in output in April.

According to figures released by the Society of Motor Manufacturers and Traders (SMMT), 176,264 units were sold during the month, the smallest decline in sales since July 2008. In April the SMMT forecast that registrations would fall to just 153,000 units, adding that there would be a time lag before the full positive impact of the scrappage scheme would be felt.

“We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations,” a spokesperson for the organisation said.

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Asda Insurance is now offering comprehensive breakdown cover for cars and vans within the UK and Republic of Ireland. Cover starts from £73.92 per year, with the option of paying monthly instalment of £6.16.

Asda Breakdown Cover is provided in partnership with Britannia Rescue, which has received ‘Best Buy’ status in the consumer magazine Which? for the fourth time in five years. Asda uses a network of more than 3,000 trusted breakdown professionals to ensure a fast response time - averaging under 40 minutes. If the breakdown team cannot solve the problem at the roadside, they will transport the vehicle, driver and up to seven passengers to your chosen destination. Alternatively, a hire car may be provided.

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More than 60,000 cars have been sold under the government’s scrappage scheme, figures released today show.

Business Secretary Lord Mandelson said that the strong uptake of the scheme, which was launched just two months ago, showed that the initiative was a success. Consumers know a good deal when they see one. These figures speak for themselves,” he said.

However, the scheme’s popularity could mean that the £300 million of government money allocated to the scheme could be exhausted far sooner than the March 2010 deadline. Over a tenth of the funding had been used up by the end of May.

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Insurers are “pressuring” drivers into settling claim just hours after they have had an accident, according to a road safety charity.

When a driver in involved in an accident that was caused by somebody else, they would normally expect to arrange compensation with the other person’s insurer. However, the national road safety charity Brake has warned that crash victims are being encouraged to settle claims quickly before they have a chance to seek legal or medical advice.

Solicitors’ groups have called for tighter regulations surrounding the advice given by insurers in the wake of a road accident.

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Up to 4.8 million UK drivers would be prepared to switch from four wheels to two during the recession, according to a new survey by the Post Office.

The majority of these cited reduced costs as a reason for ditching their car in favour of a moped or motorcycle, with 31% of drivers attracted by fuel efficiency. A further 27% of drivers believe that riding on two wheels is an easier way of getting around.

Whilst UK car sales are in stark decline during the recession, registrations of motorbikes and mopeds are increasing year-on-year, with a 24% increase in these types of vehicles on the road this spring. This trend is hardly surprising when you consider the benefits of riding a motorised two-wheel vehicle. As well as halving their fuel consumption in miles per gallon on a moped or lightweight motorcycle, motorists can benefit from road tax starting from just £15 a year, free parking in the majority of British towns and cities, no congestion charges and lower insurance premiums.

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Today sees the launch of the government’s “cash-for-bangers” car scrappage scheme, which allows owners of a car or van over 10 years old to receive £2,000 off the price of a brand new vehicle when they trade in their old one. It is hoped that the scheme will breathe new life into Britain’s ailing motor industry.

So far 38 manufacturers have signed up to the voluntary scheme, which is being jointly funded by the government and manufacturers. The scheme will last until the end of February 2010, or until the government’s £300 million in funding runs out.

Under the scheme, those who scrap their old car will receive £1000 from the government to put towards the cost of a new vehicle, as well as a similar discount from the manufacturer. Similar tactics have been tried in other European countries, including Germany, where sales of new cars have increased by 40% since the scrappage scheme was introduced.

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Those convicted of dangerous driving must offer proof that they have learnt to drive safely on the roads before they can expect cheaper driving insurance, AA Insurance has said.

The AA is introducing a new scheme to encourage safe driving. Run by the AA Charitable Trust, the scheme will see dangerous drivers take practical lessons on road safety. Young drivers with a poor track record will be put forward for the course of lessons by police with the aim of encouraging them to become safer drivers.

However, AA head of road safety Andrew Howard says that simply attending the course will not guarantee lower insurance premiums. Rather, attendees need to prove that the standard of their driving has improved before they will see a drop in the cost of their car insurance.

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Many Britons are reducing their level of car insurance cover in order to save money during the recession, new research has shown.

According to a report from the British Insurance Brokers Association, a significant number of drivers in the UK are cutting back on their car insurance as the credit crunch continues its grip, but they could end paying expensive bills that could have been covered by more comprehensive cover, the organisation has warned.

BIBA surveyed its members to see how the recession has affected brokers’ business. One in five brokers reported a reduction in the level of cover that their customers purchased since the recession kicked in. The survey found that 96% of these reductions took place in the car insurance and home insurance sectors.

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The recession drove up cases of insurance fraud last year by around 30%, according to a report by the Association of British Insurers (ABI).

Some 107,000 claims worth a total of £730m were found to be false last year, with home and motor insurance companies receiving the largest number of fraudulent claims. As detection of fraudulent claims went up, it is also thought actual fraud increased significantly. The ABI said that fraud was “more of a temptation” during a recession.

55,000 false or exaggerated home insurance claims were detected last year, whilst car attempted insurance fraud amounted to £360 million by value.

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The police are using new technology to crack down on drivers who are late in renewing their car insurance or who neglect to take out cover in the first place.

According to police figures, a total of 170,000 uninsured vehicles were stopped last year, up from just 78,000 in 2006.

This increase is largely due to a nationwide roll-out of new technologies designed to help the police catch uninsured drivers. These include the installation of automatic number plate recognition (ANPR) systems into police cars, which scan the number plates of other videos and check the details against a central database.

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