Your premium is going to increase.
Yes, they are doing it again. The second increase in Insurance Premium Tax (IPT) in a year will apply as from 1st June 2017. The new rate is 12%.
Neither we as brokers nor your insurance company gain any benefit from IPT. We act as unpaid tax gatherers, using our own resources to collect, collate and pay the amount forward. We do not receive any commission on the IPT portion of your premium.
The UK Government has ignored all of the submissions put forward and are proceeding with something that could have serious consequences. Already 1 in 10 vehicles on our roads are uninsured. Increasing costs will tempt more drivers to take a chance. Private medical insurers anticipate a loss of at least 10% of their clients, which will increase the burden on a groaning NHS.
Please, when you receive your next renewal notice, don’t blame the messenger.