Van insurance drivers who take part is the ‘cash for scrap’ scheme are also entitled to receive a £2000 discount.

Any motorist with a ten year old vehicle can now trade their motor in and get at least £2000 off the list price off a new vehicle .

A spokesperson for a leading van insurance provider stated: "Due to the extensive promotion of the scheme most people are now aware that they can get a £2000 trade-in on their ten year old car if they buy a new one, but very few realise that the scheme also extends to small vans. That is vans under 3.5 tonnes."

He furthered: "The car market is far larger than the van market and we assume that is why it has received greater promotion. Anyone wishing to trade-in their old van will find that the dealers will do all the paperwork, as well as arranging for their old car to be scrapped."

He added that competition is rife amoungst insurers, so they are offering the best deals to get customers: "Many manufacturers are endeavouring to boost the potential of the scheme by offering supplementary discounts on larger vehicles and we as insurance brokers will be supporting the initiative by offering substantial discounts on all van insurance quotes," he commented.