George Osborne raises car insurance premium tax, with over 55s the worst hit financially for 2016 Budget:
George Osborne has declared his intentions to raise the taxes on insurance premiums again for this year’s budget, despite steep rises in previous years.
The over 55 demographic are the worst hit according to research by the Consumer Intelligence group, suffering a 22% raise in premiums since 2013.
Younger drivers can benefit from lower raises as telematics and intelligent driving black boxes help to reward those in the under 25 age bracket who can prove they drive safely. The rise for this age group is 9.3% as of February, much lower than that of their older peers.
So what can we all expect from the 2016 budget and our insurance renewals, considering that the average increase across the board was 13%?
CITY AM have reported that the rise could be an additional 3%, up from 9.5 to 12.5 percent, which has caused some initial backlash from the insurance industry.
Some have spoken out against the measures as IPT had already be hiked from 6 to 9.5 percent six months ago which means that some premiums could potentially double!
An ABI spokesperson told City A.M that “Any rise in IPT would pile more financial pressure on the millions of families and firms who have done the right thing and taken out insurance.”
Those in the industry have commented that car insurance is a legal necessity and therefor should not be taxed as if it was a luxury (AA president Edmund King).
What do you think of the potential rises and what impact do you think they will have on you?
Let us know at @GoSkippy
Sources: [onebox url=”http://www.cityam.com/236604/budget-2016-industry-groups-warn-chancellor-george-osborne-against-hiking-insurance-premium-tax-as-ey-item-club-urges-against-planned-4bn-in-spending-cuts” title=”Read more” description=”City AM”]
[onebox url=”http://www.consumerintelligence.com/press-releases/car-insurance-costs-accelerate-but-not-for-under-25s” title=”Read more” description=”Consumer Intelligence Report”]