It is unlikely to result in a really big increase in premiums but Insurance Premium Tax (IPT) is to go up once more so this will mean that you are likely to be going to pay more for your classic car insurance. It was announced in the budget that IPT is going up by 0.5% to 10% and this is to be from the 1st October 2016.
Yes, a half a percentage point increase is not a huge sum. For instance, if you were paying say £300 per annum for your classic car cover then your premium would only go up by an additional £1.50 pa.
However, it was only back in November of last year that IPT rose from 6.5% to 9.5% which was a much bigger % increase than the latest rise. Apparently, it had been predicted that George Osborne, the Chancellor of the Exchequer, was likely to increase IPT by more than the 0.5% he eventually decided to increase the likes of the cost of classic car insurance by in the most recent budget.
Nevertheless, in the current economic climate, we are sure that many of you will agree that any increase in your personal expenditure is unwanted and anything that can be done to lessen the burden has got to be welcomed. So, what can you do to try to lessen the impact of any increase in your premiums?
Well, whilst you cannot avoid the increase in IPT, you may wish to consider shopping around when your cover is due to be renewed to see if you can obtain cover for your cherished, classic vehicle at a lower premium than you are presently paying. Unfortunately, not enough people shop around for the same level of suitable cover but for a lower premium. It really should not take long to do this.
One of the ways of doing this is to use one or more price comparison websites to see if you can get cheaper cover. These websites are usually available 24/7 so you can access them perhaps on an evening or a weekend when you are not working. It is a simple process and it is also quick to get one or more quotes and you should also be able to read the classic car insurance policy information to make sure that you are getting the cover that you require.