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Two-thirds (67%) of individuals have little or no data of tax which is “hidden in plain sight”, in accordance with the Affiliation of British Insurers (ABI).
Insurance coverage premium tax (IPT) applies to most normal insurance coverage insurance policies together with motor, house, pet and personal medical insurance coverage.
It’s more likely to hit the poorest the toughest as they spend proportionately extra on insurance coverage akin to house and motor cowl, the ABI stated.
IPT is a tax levied on insurers, however it’s handed on to prospects by means of the price of their insurance policies.
The ABI commissioned a survey of two,000 individuals by OnePoll, which additionally discovered that fifty% of individuals stated that they’d little or no concept of the influence IPT had on their insurance coverage prices.
That is although the tax now provides an additional £67 to the price of the common value paid for motor insurance coverage, in accordance with calculations by the ABI.
To underline its marketing campaign calling for a minimize in IPT, forward of subsequent week’s finances, the ABI has created a mascot named Snippy.
Mervyn Skeet, director of normal insurance coverage coverage on the ABI, stated: “It’s excessive time we unmask this tax which penalises individuals and companies for being accountable.
“This tax hits the poorest hardest as a result of they sometimes spend extra on insurance coverage, akin to house and motor cowl, as a proportion of their earnings.
“There has by no means been a greater time for the Authorities to point out its assist to the thousands and thousands of householders and companies who do the suitable factor by shopping for insurance coverage. We should always minimize IPT now.”
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