Introduction of New Insurance Premium Tax Puts New Challenges on Young Drivers

young drivers face new tax challengesA new tax will soon go into effect which will affect millions of people across the country in ways which are aligned with daily living. It is called the insurance premium tax and George Osborne introduced the tax which will start from November. It will require every citizen to pay an approximated £68 additional for insurance associated with cars, possessions, and pets. Insurance is already not an inexpensive endeavor. This will create new challenges, especially for those trying to keep a car on the road.

Osborne mixed no words during the summer budget. He spoke plainly about the new tax which will affect all Brits, especially those who are behind the wheel of their own car each day.

Osborne’s remarks during the summer budget are a major topic of discussion around many water coolers. In his budget speech, he said: “Britain’s insurance premium tax is well below tax rates in many other countries. I am therefore today raising insurance premium tax – which applies to only one fifth of all premiums – to 9.5%, effective from this November.”

For some car drivers, the increase in tax will equate to an estimated £50 per year. This tax, added to other taxes, will make driving a car each day more challenging than in recent years. Young drivers will especially be burdened with the extra expense as they are living a thin line with finances anyway.

A possible method to battle the expense of extra taxation is a switch in car insurance. Telematics car cover is making life easier for many drivers on the UK roads today, especially young drivers. It is the first insurance which actually rewards drivers for demonstrating safe habits whilst behind the wheel.