EARBY-based West Craven Insurance Services is urging consumers to consider switching policies to offset additional costs from the increase in the insurance premium tax (IPT) which comes into effect on the 1st November following April’s Budget.
Chancellor, George Osbourne, announced an insurance premium tax (IPT) rise from 6 per cent to 9.5 per cent.
West Craven Insurance Service’s Managing Director Ian Clarkson, said: “It’s quite a big hike and it’s likely that the increase will be calculated on all new policies, mid-term agreements (MTAs) and renewals with effect from the date implemented and will be chargeable to the customer,” added Mr Clarkson.
“You may have bought a policy in January 2015 and paid a 6 per cent IPT charge, but if you change your vehicle in December 2015 a 9.5 percent IPT Charge will be made. The insurers always calculate their net figure and then add the IPT.”
“I’m disappointed by this move as it will affect millions of households and motorists, not to mention those with pet, mobile, contents, buildings and private medical insurance.”
“I would urge people who need to renew policies to shop around. It’s always worth looking at comparison sites to get an indication of prices, but they often don’t show hidden costs and they also often have commercial relationships with insurers, so they don’t necessarily show you the cheapest available policy first.”
“My advice is to speak to a broker who can evaluate your circumstances rather than offering you something very generic. That way, you’ll get the cheapest cover – but you’ll have peace of mind knowing that you’re properly covered.”