Car Dealers Drop Insurance

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Car Dealers Drop Motor Insurance

Motor Insurance News
Added � 09/05/2007

A recent survey has revealed that many new car dealers and indeed second hand car dealers are having to drop and lucrative opportunity of selling motor insurance when they sell vehicles. The reason is relevant to the FSA (Financial Services Authority) and the rules and regulations associated with conformity.

Many car dealers simply view the requirements and costs involved too much and think dropping the product is better and more efficient than trying to hold onto it as a viable product opportunity. In the last two years alone there has been a drop of over twenty percent in car dealers selling motor insurance cover to their customers or including the same within the price of the vehicles.

The practice of offering free motor insurance cover with new cars boomed in the nineties but there is a likely hood the same volumes of car dealers will diminish over the next few years. Many car dealers feel that FSA regulations should never have applied to them in the first place and are unhappy that they have literally been forced to give up this money spinner.

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