World First waive Insurance Premium Tax increase during January
20 January 2011 11:51
World First Travel Insurance is helping travellers to beat the Taxman this month by keeping the cost of their travel insurance premiums the same as 2010, despite the rise in the Insurance Premium Tax (IPT).
Since 4 January 2011, when VAT went up from 17.5% to 20%, the media has reported the impact the VAT increase will have on everyday spending. The same percentage increase has also been applied to Insurance Premium Tax on travel insurance policies. Like VAT, it has gone up from 17.5% to 20% and means that holiday and travel insurance premiums will be more expensive, which will be a blow to people hoping for a little low cost sunshine or snow this spring.
The increase in IPT will mean that the cost of travel insurance premiums will go up for all types of policy, from annual multi trip travel insurance to medical travel insurance and every other policy available. The 2.5% rise will mean an increase in the overall cost of the premium of anything from £5 to £100 per person, depending on the type of policy.
Travel insurance specialist World First Travel Insurance has announced that they are waiving the IPT increase and passing the savings back to their customers until the end of January. Any policies taken out before the end of January will be able to take advantage of the cheaper rate.
Martin Rothwell, Managing Partner of World First Travel Insurance said: "Everyone is very conscious of the increased cost of living at the moment. We feel that the increase in the cost of IPT at this time could put people off booking holidays or deciding not to take out the right level of travel insurance cover due to the cost.
"By waiving the increase during January we hope we are able to give our customers the same great value cover at last year's prices but without having to compromise the holiday by travelling with inadequate or no travel insurance cover."
Customers can make even more savings in January by taking the opportunity to buy cheap annual travel insurance that will provide cover for the next 12 months. For people looking to take more than one trip abroad this year it could end up saving them a small fortune. World First also cover people with medical conditions who require medical travel insurance. They cover thousands of conditions and offer screening online for people up to the age of 100.
World First Travel Insurance will apply the 2.5% increase to any policies booked from 1 February onwards.