Changes to car insurance tax have cost drivers more than £200 each over the last four years
BRITS have forked out more than £200 each over the past four years following changes to car insurance tax.
Government changes to insurance tax premiums and personal injury payments are estimated to have cost UK drivers more than £7.8billion since 2015.
A recent breakdown by Comparethemarket.com revealed the average driver paid an extra £208 each year on their car insurance as a result.
Increases in Insurance Premium Tax (IPT) was largely to blame for the inflated costs, with it rising from six per cent to 12 per cent in the past four years.
And these gradual increases have cost Brits an extra £118 a year.
Changes to the Ogden rate - a method of calculating large insurance pay-outs in the event of a severe motoring injury - have also put pressure on drivers' finances.
Most common car insurance white lies Brits use to try lower their premium
These are the common lies which could make your insurance policy invalid and land you with a criminal conviction:
- How you use your car
- Lying about your job
- Not declaring previous penalty points or driving convictions
- Listing the main user of the car as an additional driver
- Hiding past claims or damage to your car
Since being introduced in 2017, insurers have been forced to pay out more to victims of serious accidents - a cost which is now passed onto motorists.
According to the figures, the average car insurance premium has risen from £551 in 2014 to £735 last year.
Dan Hutson, head of motor insurance at Comparethemarket.com, told inews: "These figures demonstrate the direct impact that government changes have had on the financial health of British motorists.
"There is little doubt that the IPT rises were seen as an easy way to raise money from British taxpayers, having doubled the tax take from £3billion in 2014 – 2015 to £6.2 billion in £2018 – 2019, but the impact will have been felt by ordinary people who rely on their car.
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"The changes to IPT and the Ogden rate have punished those who can afford it the least – the young – many of which need a car to get to their jobs.
"For a long time now, we have been calling for the Government to reform Insurance Premium Tax particularly for young people who faced the largest hikes despite being able to afford it the least.
"The Government should scrap IPT for young drivers which would help ease the financial burden of car ownership."