Choosing the correct car insurance policy could prevent new cars from depreciating in value, an expert has claimed.
Drivers whose cars are damaged in the first year of ownership could "pay dearly" if they do not have the right car insurance policy, American Express has stated.
The car insurance provider asserted that an average family car will lose 40 per cent of its value in the first 12 months or after the first 10,000 miles, although high value cars could lose around ten per cent of their value.
Joanne Field, marketing manager of American Express Insurance Services, said: "A new car – whatever the make or model – is a significant investment for any driver.
"With our inclusive cover, new car owners need not worry about the ever increasing depreciation once off the forecourt that a new car creates."
Ms Field adds that American Express' car insurance policy protects UK motorists for the first 12 months, should an accident occur and they need to make a "significant" claim.
American Express provides customers with a range of financial services, including credit cards.




