22nd October 2015
Motorists whose car insurance is due for renewal in November are being urged to seek out the best deal now to ensure they get the best value for money.
The warning comes ahead of the 3.5 percentage point increase in insurance premium tax (IPT), from 6% to 9.5%, which comes into effect on Sunday 1 November 2015.
Matt Oliver, spokesman at Gocompare.com, commented: “The new 9.5% rate of insurance premium tax was announced in the July Budget, and will be added to car insurance policies bought or renewed on or after 1 November.
“Insurance premium tax is paid as a percentage of your car insurance premium; therefore the increased rate will hit those paying higher premiums – such as young drivers – the hardest. So we’re urging drivers whose policies are due for renewal this autumn not to simply let their insurance auto-renew.”
There are some significant savings to be made by shopping-around. For example, Gocompare.com customers could save up to £202 on their car insurance – which would more than compensate for the increased tax take.
“While the motor insurance market is currently very competitive, insurers typically reserve the best deals to lure new business, rather than to reward existing customers at renewal. The only way to be sure that you’re being offered a good deal is to shop-around and compare quotes from lots of different providers,” added Oliver