Image via Flickr user Fred Benenson

The tax paid every time a policy is taken out increases from today – making premiums for cars, homes and pets more expensive.

Families could end up paying £100 more for insurance policies per year, experts have warned – as a tax increase on premiums comes into force from today.

Young motorists are likely to be most affected, and AA Insurance analysis suggests the average quote for 17 to 22-year-old drivers will soar from £1,278 to an “eye-watering” £1,319.

It is feared the tax hike could tempt some people to drive without the correct insurance – even though routine police checks would quickly uncover a fraud attempt.

Not all types of insurance are affected by the new tax rates, however.

For example, life insurance and mortgage insurance are completely exempt from IPT.

Meanwhile, travel insurance is already subject to a higher tax rate of 20%, and this will remain unchanged.

See Full Story at news.sky.com