The embattled UK motorist is again in the firing line due to two new pieces of brainstorming. While credit rating agency Standard & Poor's has stated that auto premiums need to rise in the UK, a committee of MPs has suggested implementing massive increases to road tax levied on the least environmentally friendly vehicles.
According to a report from Reuters, Standard & Poor’s has predicted that insuring a car is about to get more expensive for UK motorists. This is because the cost of setting claims is continuing to get more expensive for motor policy providers and the number of claims issued is also likely to rise.
Furthermore, prices could rise significantly as premium inflation has largely been avoided for the past three years due to market competition, leaving the providers relatively out of pocket and needing to catch up with industry conditions. In fact, according to a leading actuarial group quoted by Reuters, the motor insurance industry in the UK will probably make a loss this year; a stark reality that illustrates the point.
Meanwhile, a committee of MPs has suggested increasing road duty dramatically on the most polluting cars. The House of Commons Environmental Audit Committee has put forward the idea that the top rate of tax should be increased from just over GBP200 per year to a whopping GBP1,800, a 900% increase.
While the much criticized ‘Chelsea tractors’ would fall into the top band, many standard family cars would still be charged GBP1,500 under the committee’s proposals.