New findings from UK supermarket giant Sainsbury’s suggests that over the coming year we will see a large increase in the number of young drivers buying car insurance. This increase would mark a turning point in a market that has seen some pretty heavy decreases in figures over the last few years as more people decided not to buy a car until their finances looked healthier.
Sainsbury’s predict a 49% increase in car insurance applications over the Christmas period and think this level of increase will be maintained for most of 2011. Current trending stats and historical data has been used in the study, as well as car sales data. VAT increases that are soon to hit the UK have been quoted as a key reason for the predicted upsurge in applications. Young drivers are very keen to sort out their policies before the VAT increase kicks in as it could see their premiums increase considerably.
Off the back of these new predictions, there is also speculation that a recover of the loans market could follow as more drivers take out loans to purchase new vehicles. This knock on effect has been seen in parts of America and Mexico, where increases in car insurance applications (aplique seguro de automovil) have been followed by an increase in cash loan requests (prestamos en efectivo).
This upward trend has been taken as a very positive sign by many financial bodies as they are often an early indication of future improvements in other markets. We have heard this news before however after consumer spending showed an increase earlier this year and we were told that the end of the recession was in sight. However, after the increase failed to grow beyond very modest levels, most experts reevaluated their predictions and begun leaning towards a “double dip” recession model.
Whatever the future holds for the money markets, many still advise getting your application in now for solicitar credito as the Mexicans say, as VAT costs are due to go up any day now