New Government Tax on Insurance Pushes UK Families to Budget Wisely

new government tax on insuranceA large percentage of the UK population will be paying more for insurance soon, as the government is adding an estimated £8billion in additional taxes. All car, pet, building, as well as content within the building taxes will increase by more than 50%. This will not be an additional cost which UK families can readily absorb and not feel in other parts of their budget. The coming additional taxation will raise an estimated £1.5billion for the Treasury.

Estimates indicate an additional £50 to £100 will be added to the expenses of a typical UK household annual budget. For those carrying large amounts of insurance cover, even more will likely be added.

Martin Lewis, founder of consumer website MoneySavingExpert.com, commented on the additional taxes, saying: “If the Treasury genuinely thought that insurers would not pass on these costs to customers they are not qualified to do their job. Insurers always try to charge as much as they possibly can.”

A potential option to the increase as a way to help control the cost of car cover is a new car insurance known as telematics car insurance. It is a completely unique type of cover, as it is the first type of cover which makes it possible to earn discounts on monthly premium costs. The insurer rewards those who demonstrate safety whilst behind the wheel by rewarding drivers through discounts.

A small device which is installed in the insured car monitors driving habits like speed, braking, cornering, and the time of day in which journeys are taken. This information is processed and analysed by the insurer for the presence of safe driving. Telematics can be found online and applied for at any time.

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