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Calls made to cut ‘hidden’ insurance tax estimated to cost public and businesses £8 billion every year

Calls have been made to cut a ‘hidden’ tax which is estimated to cost the public and businesses as much as £8 billion every year. Insurance tax adds an extra 12 per cent on to most insurance policies - which means an average of £67 is added to premiums for car insurance. This tax shoots up to more than £100 for household with a car when home insurance is added. It comes after research of 2,000 adults with insurance found 31 per cent have no idea Insurance Premium Tax (IPT) even existed, while another 36 per cent only have a little knowledge about it. And half are unaware about exactly how much gets added to their policy cost because of this tax.