Wunelli backs telematics IPT exemption
Wunelli has backed calls from the British Insurance Broker’s Association to exempt telematics insurance products from IPT.
Telematics policies can offer cheaper insurance for younger drivers, and Wunelli believes offering IPT relief would encourage more under 25s to take out insurance.
Selim Cavanagh, VP telematics of Wunelli, said, ‘The IPT penalises those that have taken out insurance and are trying to do the right thing. However, there is also a bigger societal issue at stake with regard to road safety and young drivers and we fully support BIBA’s latest call to make IPT exempt on telematics-based insurance policies.
‘Driving a car is probably the most dangerous thing most people are ever likely to do and the risk increases considerably in young drivers for a variety of factors. We know through our work with insurers that drivers with a telematics insurance policy are 20% less likely to have a car crash than those with standard insurance.
‘The government acknowledged in its British Road Safety Statement that telematics-related insurance policies that monitor and financially reward safe driving behaviour through lower premiums offer a potential blueprint for new targeted casualty reduction initiatives.
‘Yet young drivers are already being hit the hardest by the IPT given they are paying higher premiums. The further rise in October could encourage an increase in fronting and uninsured driving while doing nothing to support road safety. It would appear to fly in the face of the government’s road safety vision. The societal benefits of making telematics policies exempt from IPT would far out-weigh the loss in tax revenues.’