Yesterday George Osborn unveiled his new budget plans, there were a number of surprises, both good and bad .One of the negatives we here at PRIDE365 were interested / a little bit annoyed by was the third increase in insurance premium TAX in 12 months.
Since this time last year and with yesterdays 0.5% rise there has been a total increase now of 3.5%. This will not only add to the cost of motor insurance but also most other forms of insurance such as health insurance costs, home insurance, mortgage , pet insurance and gadget insurance. However not all insurances will be rising, Life insurance is exempt to the rise as is mortgage protection insurance and Travel Insurance which already has a much high TAX rate at 20%.
The Association of British Insurers (ABI) suggested thats an increase of nearly £13 to the average comprehensive motor insurance policy. According to the chancellor, the additional income generated by the rise will all be used on flood defences.