New cars are important to Australians, insurer says

It doesn't matter how old you are, driving a car out of a showroom makes you feel like a kid who has just been given a new toy.

Aussies have been snapping up brand new vehicles in record numbers lately, with more than one million being sold in the past year.

The huge demand for gleaming motors that have come straight from the production line has prompted one car insurance provider to launch an innovative new policy.

GIO Insurance is offering a lifetime new car replacement package to its customers, which means drivers who have had their vehicle written off will not have to settle for a second-hand model.

Spokesperson for the organisation Duncan Bone said having a new car is one of the greatest pleasures in life and there are plenty of facts to back this up.

New car sales have shot up by 23 per cent in the past ten years across Australia, even though the population has only increased by 14 per cent.

"New cars are more affordable now than they have been for 35 years with the strong Australian dollar, competition between car manufacturers and low tariffs on imports," he remarked.

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