The cost of car insurance has risen by more than £100 a year because of George Osborne imposing a ‘stealth tax’ in his summer budget, the AA has claimed.
Figures from the AA indicated that the average cost of a premium rose 10 per cent over three months, and 20 per cent over the whole year, to £625.70. This represented a price increase of £105.64, and it was the biggest price hike for insurance since 2010.
The AA blamed the rise on the Insurance Premium Tax (IPT) rate rising from 6 per cent to 9.5 per cent, with George Osborne being accused of a ‘stealth tax’, after ‘sneaking’ higher premiums into his summer budget.
This has gone on to affect approximately 7.3 million policies, since its introduction last November.
Research last year by AA indicated 11 per cent of motorists believed it was acceptable to make a claim for an injury following a collision, even if no injury had occurred.
“It’s this acceptance that it’s ok to defraud insurers that has become endemic,” said Michael Lloyd, the director of AA insurance.
“It is stealing and it affects the premiums paid by your friends, your family and your colleagues – those that most wouldn’t dream of defrauding,” he continued.