Adviser - Spring 2017

New vehicle tax rates The way vehicle tax is calculated will change for cars that are first registered with DVLA from 1 April 2017. The change won’t affect any vehicles registered before 1 April, but for vehicles registered after that date, vehicle tax for the first year is based on CO2 emissions (shown on your car’s V5C registration certificate), and ranges from £10 for emissions of 1-50 g/km of CO 2 to £2000 for over 255 g/km of CO 2 emissions. After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are: £140 a year for petrol or diesel vehicles £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG) £0 a year for vehicles with zero CO 2 emissions If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 emissions for the first year. After the first year, the rate depends on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years. After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type). Scrutton Bland can offer insurance cover for all commercial and personal vehicles. With almost 100 years’ experience in helping clients find the right cover and managing claims, our team of specialists is on hand to help. Contact Ryan Whybrow on 01206 838400 or email ryan.whybrow@scruttonbland.co.uk

The rising cost of van insurance In the Chancellor’s first (and last) autumn statement, he announced that the cost of Insurance Premium Tax (IPT) will rise again in June, taking it from 10% to 12%.

Despite having one of the lowest IPT rates in Europe, the impact of the tax on the consumer continues to bite, with the average cost of insuring a commercial van now reaching around £954, 7.7% higher than in 2015. Younger drivers too have been affected, with those aged 25 and under often having to pay up to £3,025 per annum for cover. The focus for all insurance buyers, be it fleet managers or for a single vehicle policy, is getting the best value for money. Many commercial vehicle owners opt for using a broker to find the right insurance. Not only can this provide access to some of the most competitive rates but a broker will have access directly into the commercial market, and can ensure that you have all the correct covers and limits in place to protect you.

2.  Increase your voluntary excess Your excess is the amount of money that an insurer deducts from any claims settlement before it is paid to you. The excess can be adjusted so that the higher your excess, the lower your premiums tend to be. But this may mean that any future claims you make will have a lower settlement as a result, so proceed with caution on this course of action. 3. Make your van more secure It is common sense: the more secure you make your van, the less likely it is to be stolen. Make sure your vehicle is fitted with an immobiliser, alarm and tracker. This could help to lower your insurance premiums. 4. Advertise your business on the van Getting your business name and contact details on the side of the van makes it easier to identify and therefore less likely to be stolen. And of course it may well bring in new business at the same time! If you declare to your broker/ insurer that you have van signage it could help to lower your premium. Remember at the same time to make sure that your insurer includes cover for replacement sign writing in the event of a loss.

5.  Place your van insurance with a broker or insurer you already use Often insurers will offer a discount if more than one insurance policy is placed with them. If you don’t ask you don’t get! 6.  Be as accurate as you can about van mileage Statistically the further you drive, the higher your insurance premium will be, as the more you use your van, the greater the likelihood of making a claim. This doesn’t mean that you should underestimate your mileage in order to get a cheaper price. But you could be unknowingly overestimating it and paying more than you should. 7.  Be realistic about the value of your vehicle You may be tempted to think that if you suggest your van is worth more than it is, then insurers will pay you that amount in the event of a total loss. This is not the case! Insurers will research the replacement value at the time of your claim, so if you inflate the value of your van you may well be also paying a higher premium, without any guarantee of a higher payment if you write it off.

8.  More than one van or company vehicle? If you have more than one vehicle in your company name, you may be eligible for a fleet policy, providing more flexibility and maybe even a saving. Speak to your broker for more information. 9. Always be honest! It is human nature to be tempted to tell the occasional fib to try and reduce the premium – but it’s not a good idea and could be illegal. Your claim could be refused if you haven’t been honest on your policy, and could even lead to your policy being cancelled.

Insurance is now a significant cost within anyone’s budget and it is important that you get it right. When talking to a broker it is critical that you are precise and honest. For example, you must specify what the vehicle is being used for and provide an up to date replacement value. Not only could these details have a significant bearing on your premium, but providing false or inaccurate information can invalidate a claim. Ryan Whybrow, Insurance Broker at Scrutton Bland gives his top tips to consider the next time your policy is up for renewal: 1.  Build up your no-claims bonus For every year you go without making a claim, you’ll build up a year’s worth of no-claims bonus. The longer you go without making a claim, the higher your ‘safe driver’ rating will be with your insurer. Some (but not all) insurers offer the opportunity to mirror your no-claims bonus from your car insurance policy, so make sure you let your broker know if you have any no-claims bonus so they can check.

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