caravan insurance premiums are on the increase
(PRWeb UK) February 26, 2011
The rise in VAT from 17.5% to 20%, and in IPT (Insurance Premium Tax) from 5% to 6% came into effect in January this year.
Some retailers temporarily absorbed the VAT increase offering consumers a window of opportunity to buy before putting up prices so its only now that the full impact of the increase on the financing of our favourite way to holiday is being realised.
From buying bread to filling up at the pumps, the cost of caravanning is set to rise. Whilst we can shop smarter and buy budget, there is one area where it’s not clever to cut corners - Caravan Insurance.
Right across the board, caravan insurance premiums are on the increase, which will undoubtedly see a surge in cost-conscious caravanners shopping around for the cheapest option. However, according to Shield Total Insurance, all like-for-like policies are likely to reflect the increases as insurers and brokers share in the burden of the tax hikes.
Stuart Craig, Sales and Marketing Manager at Shield Total Insurance, explains; “Suppliers to the insurance industry, such as repairers, loss adjusters and solicitors all upped their fees as soon as VAT rates rose in January. This, along with the increased volume and value of claims and the fact that policies will be paid at the higher rate even if premiums were calculated on the lower VAT, leaves providers little option but to pass the increase on if their businesses are to stand still.
He adds, “When shopping around for a renewal, we’re urging consumers to pay particular attention to the replacement and repair value of the items they have insured. Previous values will have been based on VAT at 17.5% and with the increase in costs they may find they are not adequately covered.”
The team at Shield Total Insurance is offering to help caravanners absorb the impact of the tax increase with a free review of existing policies to ensure adequate cover is provided and a special offer.
Benefit from a 10% reduction on the cost of their caravan insurance premium before 21st April 2011 when quoting SHO411.
For more information contact Shield Total Insurance on 08448 474 474 or visit http://www.shieldtotalinsurance.co.uk
About Shield Total Insurance
Shield Total Insurance (formerly Shield Direct) was established in 1997 as one of the first specialist Caravan and Motorhome insurance intermediaries in Great Britain and Northern Ireland.
A series of comprehensive insurance packages are offered, each designed to cater for the specific requirements of the caravanning and motorhoming community. These include policies for homes, pets, folding caravans and campers, tents and trailer tents.
Policies are also available for static caravans, residential park homes, holiday lodges and log cabins making Shield Total Insurance one of the biggest and most experienced providers of outdoor leisure related insurance.