22 May 2017.
For immediate release.

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Car Insurance Costs Rocket
Car insurance premiums will be hit hard by a combination of government and proposed EU legislation.
From the 1st June 2017 Government will increase Insurance Premium Tax (IPT) from 10% to 12%, the third increase in eighteen months!

Introduced in 1994 at 2.5%, it then rose to 6% by 2011, doubling to 12% by 1st June 2017.

The Association of British Insurers (ABI) said the average premium is now £462, a 9.3% increase from the previous year, with the under 25's paying at least double or triple this amount.
Based on the average premium, IPT will amount to approximately £110 and even more for the under 25's or newly qualified, who are already finding it financially difficult to maintain their mobility.
This will be a double whammy for the unemployed, whose premiums usually cost more because of the way insurance companies rate different occupations.

In addition, insurance costs are also rising and hence IPT due to the following:- The Alliance of British Drivers condemns yet another unnecessary tax rise.

 
 
NOTES FOR EDITORS
 
Please contact Terry Hudson:- 01227 792698 or kent @ abd.org.uk

1. This is money — UK named as the world's whiplash capital
2. Autocar — Why modern cars are getting more expensive to fix
3. Guardian — Car insurance and the little-known world of credit hire companies/A>
4. Telegraph — New European ruling means changes to insurance law
 
 
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