Motorists keen to reduce their car insurance premiums by trading in their current model for a second-hand vehicle may find now is a good time to buy, if the comments of one industry body are anything to go by.

EurotaxGlass's reported there has been a "dramatic rise" in the number of used cars being snapped up by UK dealers.

It stated this may be the result of the modest increase in demand which was witnessed after Christmas.

Adrian Rushmore, managing editor from EurotaxGlass's, said: "The level of trade buying is unprecedented for this time of year, exceeding all expectations given the broader economic conditions."

He pointed out retailers may have decided to focus their efforts on used cars in an attempt to try and minimise the effects of the expected decline in new vehicle sales.

Meanwhile, EurotaxGlass's recently predicted values of second-hand models would not fall as steeply in 2009 as they did in 2008.

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