If your insurance is ending soon, easy way to save money

Quentin

Quotes change all the time.


Generally online quotes are cheaper than phoning for quotes.


You have got 2 different quotes over a period of weeks (online and by phone), and have drawn the wrong conclusions!

ItsJordannn

forgotmyname wrote: »

Sounds like you paid the price for the previous quote and not the new quote.

.

Even so, when I accepted the quote, it said included in the premium was 6% tax. I assume this was because I purchased before the 1st November.

I'm 90% sure that if I had waited until November to get a quote, it would say that 9.5% tax would be included in the premium.

Not sure what would've happened if I tried to accept the previous quote after the tax had increased, due to the previous quote having included 6% tax.

Surely if everything was the exact same, you would save money by paying for your insurance now and paying 6% tax rather than waiting until November and paying 9.5% tax.

ItsJordannn

I appreciate quotes change all the time.

The reason I have got to the conclusion that paying for my insurance earlier has saved me money was due to it saying included in my premium was 6% tax.

Can't say for definite but I'm pretty sure that if I tried to get a new quote after the 1st of November, it would say included in the premium is 9.5% tax.

Rossim1985

The new higher tax rate applies to policies with an inception (start date) of 1st November or later.

The new standard rate will be due on premiums treated by the legislation as received on or after 1 November 2015, except where insurers operate a special accounting scheme. In that latter case, the new standard rate is only applied to premiums relating to risks covered by the terms of a contract entered into after 1 November 2015. From 1 March 2016, the new standard rate applies to all premiums, regardless of when the contract was entered into.

https://www.gov.uk/government/publications/insurance-premium-tax-increase-to-standard-rate/insurance-premium-tax-increase-to-standard-rate

I work in insurance broking and all the insurers I place business with are applying 9.5% on any new policy with a start date on or after 1st November regardless of whether it's paid now in October before the rate rise or next week.

ItsJordannn

Rossim1985 wrote: »

The new higher tax rate applies to policies with an inception (start date) of 1st November or later.

The new standard rate will be due on premiums treated by the legislation as received on or after 1 November 2015, except where insurers operate a special accounting scheme. In that latter case, the new standard rate is only applied to premiums relating to risks covered by the terms of a contract entered into after 1 November 2015. From 1 March 2016, the new standard rate applies to all premiums, regardless of when the contract was entered into.

https://www.gov.uk/government/publications/insurance-premium-tax-increase-to-standard-rate/insurance-premium-tax-increase-to-standard-rate

I work in insurance broking and all the insurers I place business with are applying 9.5% on any new policy with a start date on or after 1st November regardless of whether it's paid now in October before the rate rise or next week.

Fair enough, perhaps I got lucky with paying 6% then.

rs65

ItsJordannn wrote: »

Fair enough, perhaps I got lucky with paying 6% then.

Does the amount of tax work out at 6% or does it just show '6%'.

There is a possibility they have charged you 9.5% but their documentation hasn't been updated.

If you have actually been charged 6% then it is wrong. They will either come back to you for the difference or absorb it themselves as a mistake.

Whichever, the tax man will be taking 9.5%.

This isn't a money saving tip. At best it is a mistake by one insurer, which may work out in your favour.

ItsJordannn

rs65 wrote: »

Does the amount of tax work out at 6% or does it just show '6%'.

There is a possibility they have charged you 9.5% but their documentation hasn't been updated.

If you have actually been charged 6% then it is wrong. They will either come back to you for the difference or absorb it themselves as a mistake.

Whichever, the tax man will be taking 9.5%.

This isn't a money saving tip. At best it is a mistake by one insurer, which may work out in your favour.

I'm not sure how much I have actually been charged, how would I check?

When I took out the policy, on the screen where it told me my premium it said this includes 6% tax so I assumed that was correct.

rs65

ItsJordannn wrote: »

I'm not sure how much I have actually been charged, how would I check?

Do your documents tell you?

ItsJordannn wrote: »

When I took out the policy, on the screen where it told me my premium it said this includes 6% tax so I assumed that was correct.

Might just be a typo on that page.

kpwll

My home insurance was due to start on 9th November, had the renewal and phoned them to ask if I paid before the end of October would the tax be 6%. Fair play she went and double checked and then I was told that any policy that starts/renews after Nov 1st would be liable for the higher rate.


She did ask if there was still a mortgage on the house, I told her it had finished in August (hooray) and had a discount for no mortgage, which more than offset the raise.
I told her I never thought to inform my insurance company that the mortgage was paid off but she said it did make a difference to the premium, so worth knowing.