Compare Caravan Insurance

Once you start to look at caravan insurance quotes you may notice that the costs you are given are linked up to something known as IPT or Insurance Premium Tax. In the majority of cases you’ll only notice this when you ask for a quote on a policy. The cost of your premium for the cover is often stated as a sum that includes IPT. So, what is this and how does it work?

Insurance Premium Tax has to be paid by companies that operate in certain areas such as insurance where the income that they make is subject to tax. So, an insurance company that sells caravan policies has to deal with this tax when they agree policy arrangements with their customers and start taking premium payments.

There are two charge rates for IPT (17.5% and 5%). Luckily, in the UK the rate given for caravan insurance is set at the lower rate of 5%! This tax basically is added to the cost of the premium you pay for your insurance by the company. In most cases it is added on to caravan insurance quotes with a note explaining that the quotes are given to include IPT tax. In some cases, insurers may list their quotes and IPT costs separately and then total them but this may be relatively rare.

Although an insurance company has to list their IPT costs somehow with caravan insurance quotes this isn’t something that consumers are able to do much about. This is a tax that insurers have to deal with and it is added to the consumers’ costs as standard. So, there’s no way to try and cut costs by having the tax deleted! But, given the extra costs this brings with it, you may want to try and find suitable policies at the lowest costs. A specialist insurance broker may be able to search for them on your behalf to show you a variety of cost options.

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