FROM October 1st, Insurance Premium Tax (IPT) has gone up from 9.5% to 10%. This will make a difference to your home insurance – and your car insurance as well.
The Government has increased IPT, put bluntly, to raise more tax. They say (I read) for building flood defences and other good causes, but let’s not kid ourselves. It’s a tax increase no matter how you dress it up.
It is only 0.5% but you can rest assured that it will be passed onto consumers to pay. The insurance companies are not charities and whilst home insurance is competitive, it will be the same for everyone.
So, in basic terms, you can expect a small price increase in your home insurance in the short to medium term. When it comes to renewal, you’ll be lucky if you can retain the same price or go lower, chances are you will see an increase.
Don’t blame the insurers or your broker. Blame the Government here.
Now the good news is that as I said, home insurance is a competitive area. The Home Insurer has a price Guarantee to beat any standard home insurance quote on a like for like basis. That means you can beat the new IPT increase. That means compared to current price you are paying, you should save on your renewal notice if you switch to The Home Insurer.
And the nice thing with The Home Insurer if you do not make a claim in the first year, then your renewal will be the same or lower than your first premium. It rewards loyalty and lack of claims rather than looking at increasing premium and making more profit from you.
The IPT increase will impact on car insurance as well. Unfortunately The Home Insurer cannot help you there and you’ll need to go to specialist car insurers for that. But if it’s property insurance, then you are in the right place.
And if your property has suffered flood, subsidence or other claims in the recent past, then The Home Insurer can help too. The price guarantee does not apply in non-standard but you’ll find excellent rates and superb policies – in many cases the lowest price and best cover in the UK. There is another price guarantee on Landlord Insurance though.
To get a quote, visit The Home Insurer today and don’t let IPT worry you in the short term, that’s the way to save money.