How Scrapping Your Old Car Can Keep Insurance Costs Down

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As if it wasn’t bad enough that the cost of living crisis has pushed up energy bills, the price of food and the cost of filling up at the petrol pumps; now car insurance is surging too.

This has been revealed by price comparison website Compare the Market. It has revealed that the average premium has increased by £68 year-on-year, with the cost rising by as much as £100 for the most popular models. The Ford Fiesta Zetec is the model that fares worst of all, up £129 from 12 months ago to £785 a year.

Even the cheapest average premiums are up by around £42 to £568, showing that this is a problem for drivers across the board, although shopping around can still bring significant savings.

A range of different reasons account for the increase: Increased road usage as the pandemic has eased has meant more accidents; second hand cars have become more expensive because fewer new cars are being made, while the cost of replacement parts has also risen.

The last of these is an issue that may make it a good idea to scrap your car. There comes a point where it makes more sense to send your creaking old vehicle to the crusher and get a fee for it than to continue spending on lots of increasingly costly replacement parts. Sooner or later it makes sense to buy a replacement and enjoy greater reliability along with less maintenance.

Of course, there are times when a second hand car is in good shape and does not warrant scrapping - and many viewers of the Top Gear TV show have been venting on social media after the team did just that to three viable motors in a recent episode.

However, if your car is truly on its last legs (or wheels), it really can make sense to get it scrapped and replaced. Indeed, you may get far more good use out of your next purchase than Freddie Flintoff and co did.