4th June 2019
Carrot Insurance comments on government IPT consultation
Commenting on the government’s announcement that it has published its consultation into insurance premium tax (IPT), Ed Rochfort, managing director of Carrot, which insures young drivers said:
“We have been expecting this consultation since the Chancellor announced a review in his Spring Statement. While we welcome the review, we were hoping to see the terms of reference expanded to enable the government to explore reforming the tax itself. At the moment the consultation covers the mechanics of IPT, rather than the principles and drivers behind it.
“For some years now, Carrot has argued that IPT hits young drivers harder than other age groups because they usually pay more for their insurance. We believe that, instead, the government should reform IPT and incentivise younger drivers to choose telematics-based insurance, which has been a key factor in reducing the incidence of young driver accidents on UK roads.
“At Carrot, we’ve seen a 42% reduction in accidents among customers using our telematics, compared to young drivers with a traditional insurance policy. We also know that Carrot customers who check their driving score more than four times a week are 39% less likely to have an accident.
“In the market as a whole, telematics has driven down claim-related losses for insurance companies and helped reduced casualties by 35% among 17-19-year-olds since 2011. This compares with 16% of the driving population as a whole.
“If the tax system can play a part in bringing down road accidents, there is surely a case for ministers to act.”
- October 2019 (2)
- September 2019 (4)
- August 2019 (5)
- July 2019 (4)
- June 2019 (5)
- May 2019 (4)
- April 2019 (5)
- March 2019 (1)
- February 2019 (2)
- January 2019 (6)
- December 2018 (5)
- November 2018 (3)
- Trak Global Group completes significant minority investment from Three Hills Capital Partners
- Road usage charging to solve our transportation funding dilemma
- Depression, stress and anger can make drivers more likely to have accidents, according to new YouGov research to support Mental Health Awareness Day
- Carrot Insurance wins ‘Best Customer App’ at Insurance Times Tech & Innovation Awards
- Leon Hurst appointed CEO of Mobility at Trak Global Group
- The continuing rise in relay theft, OEMs’ responses and trackers’ effective role