2 December 2014
The Road Safety Foundation (RSF) has called on the UK Government to waive the 6% IPT rate on telematics-based insurance policies for young drivers. The aim is to lower insurance premiums for young drivers under 25 by improving driving habits and safety. The IPT saving is intended to offset the costs of installing the new technology in land vehicles and encourage further uptake among young drivers. Young driver engagement is positive with 90% checking their performance on a regular basis and 70% driving safely enough to earn insurance discounts.
Ageas, the third largest motor insurer in the UK, endorses the RSF proposal and claims the IPT saving can include the following benefits:
Create 250,000 additional young driver policies that encourage safe driving behaviour Eliminate 2,500 personal injury crashes a year over seven years and over 25,000 damage crashes
FiscalReps shall keep you updated on any developments.