Budget 2016: Fleets face higher insurance costs
16 March 2016
Author: Rupert Saunders
Companies are likely to face marginally higher insurance costs on company cars (and other insurance policies) as the result of a 0.5% increase in Insurance Premium Tax.
The tax rises to 10% with immediate effect; having already been increased from 6% to 9.5% last year.
The move comes against a backdrop of trying to reduce insurance premiums by clamping down on fraudulent whiplash and other injury claims. Moves by the government announced last year have not yet had a material effect on premiums.