Autumn Statement – Not good news for your Car Insurance Premiums!
After yesterdays Autumn statement from the Chancellor, its not good news with regards to your car insurance. Phillip Hammond announced yesterday that Insurance Premium Tax (IPT) would rise by 2% to 12%. Consumer Intelligence estimates that this increase will equate to an extra £15 on average increase to your car insurance premium which is another blow to motorist after insurance premiums have already increased by 13.5% within a year. The worst hit will be young drivers whose premiums are expected to increase by £35 per year.
Announcing changes to IPT, Phllip Hammond said: “Insurance premium tax in this country is lower than in many other European countries, and half the rate of VAT. In order to raise revenue, which is required to fund spending commitments I am making today, it will rise from 10% currently, to 12% from next June.”
Tim Ryan, Executive Chairman at UNA; the organisation owned by 13 of the UK’s regional insurance brokers responded, “In the space of a year Insurance Premium Tax (IPT) has now risen from 6% to 10% and now to 12%. This is a significant blow”
Our recommendation at MyMoneyComparison.com is to shop around for Insurance. If you stay with your current provider you may not always get the best deal and with year on year increase of insurance premiums its wise to compare the market to get the best deal for you when buying car insurance.
To compare car insurance, check out our comparison engine which compares all main leading and niche insurance companies