For further information:
Lucy Pope, Consumer Communications Manager RIAS Plc 01202 254445 lpope@rias.co.uk   
www.rias.co.uk

18th July 2009 

UK car scrappage scheme has wide appeal, yet 650,000 motorists set to be disappointed

• 1m motorists want to use scheme, yet just 300,000 sales available
• Reducing motoring costs remains a key consumer concern 

Two months on after the launch of the UK car scrappage scheme new research¹ from specialist insurer RIAS highlights almost one million eligible UK motorists would like to use the car scrappage scheme to purchase their next new car² yet only up to 300,000 car sales under the scheme will be available

Three times more motorists want to use scheme than funding allows

Figures from the over 50s insurance provider show that 948,000 motorists who have a car 10 years old or over would like to purchase their new car under the scrappage scheme in the next six months. This equates to over three times the amount of car sales allowed under the current scheme parameters. Over 50s make up 40% of these drivers who would like to use the scrappage scheme, equivalent to 384,0003 people.
 
On average, these eligible motorists set to buy a new car in the next six months are prepared to spend over £10,000 on purchasing their new vehicle.

Reducing motoring costs is a key concern for consumers

In addition to the potential cost efficiencies presented by the scrappage scheme, nine out of ten motorists (88%), whether eligible to take part in the scheme or not, are taking active steps to reduce their motoring costs, including 13.4m over 50s. The RIAS research shows that UK motorists are looking to cut the costs of motoring by undertaking the following actions:

Janet Connor, Managing Director at RIAS comments: "Our latest research report shows that the UK car scrappage scheme has certainly captured the imagination of motorists across the country. In the current climate the £2,000 scrappage incentive is an attractive option for people in the market to buy a new vehicle, and who are concerned about their motoring costs
 
"UK motorists are being enterprising in terms of undertaking specific strategies to reduce their motoring spend. Shopping around at renewal for motor insurance is one of the best ways to ensure customers are getting the most comprehensive cover tailored for their needs, at the right price for them. And with over half of over 50s making fewer journeys, as well as four out of ten drivers reducing their driving speed, our research underlines why older drivers can present a better insurance risk, and enjoy more competiitve premiums because of their actions."

For more information about motor insurance available from RIAS, as well as the full product range, visit www.rias.co.uk

-Ends-

¹ All figures, unless stated otherwise, from Optimum Research. Total sample size was 2,054 adults over the age of 18 years, including 1,067 adults over the age of 50. Fieldwork was undertaken from 5-9 June 2009. The survey was carried out online.
 
² The research shows that 78% of the UK population own a car, equivalent to 38m people, based on UK adult population of 48.7m (Source: Population projections by ONS, 2009). 21% own a car over 10 years old, equivalent to 7.9m. Of these eligible motorists, 12% would be likely to take advantage of the scrappage scheme, equivalent to 948,000 motorists.
 
³ The over 50s population in the UK is 17.7 million (Source: Population projections by ONS, 2009). According to the research, 3.2m over 50s motorists own a car over 10 years old, therefore eligible for the scheme. Of those, 12% would be likely to take advantage of the scrappage scheme, equivalent to 384,000 people.

 About RIAS
 

• RIAS was established in 1992 and is a specialist provider of insurance products for the over 50s age group
• RIAS negotiates with a panel of insurers to secure competitive, value for money products
• Part of Fortis (Insurance UK), RIAS has over 970,000 customers, employees over 1,100 people across two UK sites, and is one of the UK's fastest organically growing insurance intermediaries