According to recent figures, the number of new cars being registered has fallen, by 21 per cent in the month of September, with the Society of Motor Manufacturers and Traders (SMMT) states that this is due to people choosing to “weather out the storm” of the global credit crunch, which may be of interest to car insurance customers.

This marks the fifth consecutive month of falling car registrations and the SMMT are calling on the Government to try and stimulate consumer confidence, as the current financial crisis has had a major affect on the entire economy.

Paul Everitt, chief executive of the SMMT, said: “This represents the worst decline in new car and commercial vehicle registrations since 1991.” The SMMY thinks that it could be around autumn next year before the market starts to stabilise.

Some officials from the SMMT have also expressed concern that the government is preoccupied with the financial crisis and is not paying enough attention to the real term effects of the problems, stating: “We’re hearing a lot about what’s happening with the banks but there are concerns that these real economy impacts are not really registering.”