Company Car Drivers Face Staggering Insurance Premiums After Recent Tax Changes

Strategic Insights -

Recent tax changes that have made company cars less cost-effective for employees have been offset by the high cost of insuring their own vehicles. According to a survey by OneQuote, insurance premiums for ex-company car drivers vary by as much as 500% depending on the insurer's policy. Despite the potential savings from giving up a company car, some insurance companies penalize ex-company car drivers by not offering a full no-claims discount, even if they have had years of accident-free driving.

Key Takeaways:

  • Insurance premiums for ex-company car drivers can vary by as much as 500% depending on the insurer's policy.
  • Three insurance companies refused to give quotes to OneQuote for a 36-year-old nursing home manager.
  • The most expensive quote for a 29-year-old sales rep came from Churchill, at £986, while the cheapest quote came from Eagle Star Direct at £355.
  • Direct Line is now offering a maximum of 50% discount to ex-company car drivers aged 30 or over, who can show a three-year accident-free record.
  • OneQuote believes the market is increasingly changing in favour of ex-company car drivers, with some insurers making concessions.
  • Ex-compana car drivers can save up to £956 on their taxable charge by driving more than 2,500 business miles a year.

Statistics:

  • Insurance premiums for ex-company car drivers can vary by up to 500%.
  • The most expensive quote for a 36-year-old nursing home manager was £1,930 with Eagle Star Direct.
  • The cheapest quote for a 29-year-old sales rep was £355 with Eagle Star Direct.
  • Three insurance companies refused to give quotes to OneQuote.
  • Direct Line is offering a 50% discount to ex-company car drivers aged 30 or over.
  • The maximum discount previously available was earned by drivers over 50.

Sources:

  • OneQuote
  • Direct Line