With the UK in recession, the sudden heavy snowfall across Britain has created a major impact towards the economy, costing Britain’s financial system billions of pounds as the country came to a standstill.

With taxis and London transport out of service, a number of businesses already struggling with recession, had suffered a great financial loss losing millions of pounds in a matter of hours.   

As Monday’s snow begins to turn into ice, motorists have been advised to postpone unnecessary journeys.

Insurance claims boost in a matter of hours

Already the car insurance industry has revealed it has seen a soaring number of claims within the past few days.

The Highways Agency revealed that the number of breakdowns had increased by 3,000 while accidents had tripled.

By 10am on Monday, the number of car claims had increased by 30 per cent according to AA Insurance.

Norwich Union Insurance stated that it had received over 4,000 road accident claims made on Monday alone.

With many smaller roads not having been gritted, motorists around Britain have been warned to be extra cautious and aware when driving their vehicles during the snowy and icy conditions.

A spokesman for the RAC said: "If you are driving along and you cannot hear your wheels turning that probably means you are on ice."

Are you insured?

Insurers have advised motorists to ensure they have adequate car insurance cover as various parts of the UK suffer from the effects of the heaviest snowfall in 18 years.

Nick Starling, of the Association of British Insurers (ABI) said: “Severe weather conditions cause great disruption and inconvenience, and insurance is there to help soften the blow.

People who have suffered flight delays or damage to their home or vehicle due to the weather should contact their insurance company for advice.”

Another standstill

What’s more, the Met Office has issued a severe weather warning revealing that as much as 10 inches of snow is expected to build up in various regions.

Barry Gromett, forecaster at the Met Office said: "At this point, it looks like the most affected areas will be Wales, extending through the Midlands and over towards Lincolnshire, Cambridgeshire and East Anglia but it's likely to feed southwards during the course of Wednesday night and Thursday, with the potential for similar amounts to those we've already seen."

And to make matters worse, Britain’s shortage of grit could mean more chaos and a boost in accidents the second time around.