No claims discount insurance news - New car sales dropped in September

Insurance news - Even drivers with no claim discount are not increasing car sales

Reports revealing a drop in new car sales suggest that many drivers building up their no-claim discount insurance discounts have not been investing in a brand new car in which to do so.

According to the Society of Motor Manufacturers and Traders (SMMT), 332,476 new cars were registered throughout September in the UK which reflects a decline of 0.8% on September 2010. September usually accounts for approximately 17% of annual car sales.

The SMMT has estimated that the UK is on course for 1.92 million car sales during 2011, despite a previous estimate of 1.93 million, which is 5% lower than 2010.

The declining figures follow a 7.3% rise in August which was the first rise in the market in over a year.

The report has revealed a 9.3% drop in consumer sales, however, the amount of cars sold to businesses and fleets increased.

Howard Archer, the chief UK economist at IHS Global Insight, said, "It seems inevitable that many consumers will be unwilling or unable to spend on big-ticket items like a car, given squeezed purchasing power resulting from high inflation, low wage growth and tightening fiscal policy."

The good news is holders of men and women's car insurance can qualify for no-claim discount insurance regardless of whether they have recently bought a brand new car.