Just a quick message to all customer obtaining new quotes from us. You will begin to notice differences in premiums quoted for policies with inception dates of the 4th January 2011 and later. This is due to the change of Insurance Premium Tax by the Government on this date from 5% to 6%.
With the way insurer accounts work, some policies will apply the higher rate based on the inception date of the policy (i.e. the date cover commences) whereas others will base it on the transaction date (i.e. the date you take out the policy regardless of when it starts). This means that the next few weeks leading up to deadline date, some quotes will incur the new higher rate of tax while some do not. From the 4th January onwards it is more straight forward as all policies will be at the new rate.
At the time of writing, we are not aware of any forthcoming rate changes by our insurers so the apparent increase in premiums will purely be due to the higher tax rate that you are paying.