Alistair Darling's announcement that the government is to cut VAT from 17.5 per cent to 15 per cent could see a drop in the number of car insurance claims in the UK, if comments from the Institute of Advanced Motorists are anything to go by.

The group has argued the move should encourage more people to buy newer vehicles.

It stated this was good news because more up-to-date models tend to be safer.

Director Neil Greig said: "The increased safety features of newer ... vehicles are going to have a beneficial effect in terms of crash protection."

He added the pre-Budget report announcement that motorway improvements are to be brought forward should also help to make Britain's roads safer.

Mr Grieg stated the decision to start work on increasing capacity in 2009 rather than 2011 would reduce the dangers of congestion.

In other news, IAM recently urged motorists who want to avoid making a car insurance claim this winter to allow extra time for journeys.

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