Last week Chancellor George Osborne revealed his July 2015 budget. Convicted Insurance look at how the latest changes will affect your car insurance premiums.

Convicted driver insurance

The chancellor has announced that insurance premium tax will be increasing under the new budget. The rise from of 3.5% – from 6% to 9.5% – means that there will be an estimated £8 billion paid into the Treasury over the next six year period. Motorists will bear the additional cost as we will see an increase of around £15 on the average car insurance policy.

It’s not only motor insurance that will be affected, though, as home insurance, pet insurance and other types of policy will also see the new insurance premium tax increase. A typical two car home will see around £35 added to their yearly household insurance costs.

The average cost of an annual car insurance policy in Britain currently stands at around £360-£445. This means that most people will see an increase of around £12-15 due to the new tax increase.

The higher your premium is the more tax you will pay, so younger drivers will be hit hardest. Young motorists’ insurance premiums are set to rise by at least £50 every year – meaning that getting behind the wheel will become increasingly pricey for teenagers and new drivers.

People that need convicted driver insurance will also be hit hard as their car insurance premiums are typically higher than the national average. Insurance for convicted drivers is already difficult to find and the added tax will mean that costs will be even higher. Additionally, home insurance for people with convictions will also be affected, as criminal conviction home insurance tends to cost more than a typical policy.

There are some fears that the new taxes and subsequent price hikes could lead to an increase in the number of uninsured drivers on our roads. A recent increase in the number of impounded car insurance enquiries we have received would indicate that there are already more and more cars being seized for motoring offences every day.

If you are looking for insurance and have criminal or motoring convictions contact us today and we will provide you with competitive quotations from our network of specialist providers. We can help you find the right car insurance for convicted drivers or criminal conviction home insurance policy today.