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The government has said the latest IPT increase will help fund new flood defences
Over the last 12 months, all three types of home policies have increased, according to the latest AA British Insurance Premium Index.
Buildings insurance has jumped £13 – 13.6 per cent to £113.59 a year on average, while contents cover has risen about 8.4 percent or £5 to £64.22 and a combined buildings and contents policy is up £9 or 6.1per cent to £158.49.
Households are facing further increases in the cost of their insurance as the standard rate of insurance premium tax, which applies to most general insurance policies bought in the UK, increased to 10 per cent last month.
The hike is expected to push up the cost of new policies bought by a wide range of insurance customers, including those buying home insurance, motorists, private medical insurance customers and pet owners.
It is the second increase to the tax rate in less than a year – and some in the industry have warned it could lead to a spike in uninsured driving, particularly among younger motorists who already tend to pay more for their cover.
The Government has said the latest IPT increase will help fund new flood defences and maintain existing ones.
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Huw Evans: ‘The Government should be in no doubt that such steep increases may eat into finances’
But the AA – which estimates the recent IPT increases have added around £18 to the average car insurance premium over the past year – has urged Chancellor Philip Hammond not to impose any further hikes in the Autumn Statement.
Huw Evans, director general of the Association of British Insurers, said: “Insuring your home or business, your health and your possessions is the wise thing to do, taking responsibility for protecting yourself from some of the unexpected events in life. Insuring your car is a legal requirement.
“These two IPT increases are a raid on the responsible, taking advantage of those who already do the most to avoid becoming a burden on the state.
“The Government should be in no doubt that such steep increases in insurance premium tax may eat into the finances of both households and businesses.”
Sharp rise for house insurance premiums with prices set to soar even FURTHER have 375 words, post on www.express.co.uk at 2016-10-27 15:01:57. This is cached page on WBNews. If you want remove this page, please contact us.
