Insurance Premium Tax

24th July 2016

Lorry Insurance: costs set to rise from 1 November 2015.
In this year’s Summer Budget the Chancellor announced a 58% increase to Insurance Premium Tax (IPT), raising the current rate of 6% to 9.5% with effect from 1 November 2015. The 2015 RHA cost tables detail the average insurance premium for a 44t lorry at £3,675, however depending on the risk profile of the operator and its associated work type such costs could be anything up to £6,000 per vehicle. Operators with say 50 vehicles could well see their annual insurance premiums increase by as much as £10,000.

Some suggestions on how to reduce your insurance costs are as follows:

  • Shop around for the most competitive quote using a comparison service.
  • Where your workforce is stable, name all drivers on the policy as ‘any driver’ policies tend to be more expensive.
  • Risk reduction measures such as yard security and alarms/immobilisation devices fitted on the vehicle.
  • Consider a voluntary excess.
  • Drivers with a clean record and over 25 or 30 will reduce the insurers risk and thus the operator’s premium.


 
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