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Daily Record
4 days ago
- Automotive
- Daily Record
Car tax changes as certain drivers face rise of nearly £2,000
Bills are set to rise sharply as a result of the new tax year, with van owners among those affected by the increase Tax changes mean buying a certain type of vehicle will cost an average of nearly £2,000 more, experts say. Go Compare's analysis forecasts that van purchases will see an average hike of £1,732 due to increased Vehicle Excise Duty (VED) rates brought in this year. Calculated with emissions in mind, van owners, predominantly utilising petrol and diesel, are set to be affected. Prior estimates by Go Compare indicated an additional £15.5 million in VED charges within half a year post-update, suggesting road users could face about £1,732 extra from April 2025. Motoring expert Tom Banks has warned: "The increased VED rates will result in a big hit if you buy a brand-new van later this year, but there are things you can do to absorb the blow. "The tax rates are based on CO2 emissions, so if you're able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands." Due to their emission levels, diesel vans often fall into the highest VED brackets, leaving their owners most exposed to tax hikes, reports the Express. Go Compare also says that in the first half of the 2025/26 financial period, owners may experience a stark rise averaging £1,807 per vehicle. Research finds new petrol van purchases will generate an extra £1.2 million, amounting to £1,354 more on average for each petrol van. However, those opting for a hybrid van under the incoming rules would need to shell out merely an additional £252 in tax for road use. Hybrid van owners could save a staggering £1,500 annually compared to diesel van drivers, though they may face steeper initial costs. Meanwhile, opting for an electric van incurs only £10 more each year in road usage fees, presenting a significant advantage for those with the means to invest. The team at Go Compare have suggested that purchasing second-hand hybrid or electric vans could be a smart option, offering lower prices along with the same tax perks. Tom said: "If you can't buy a suitable hybrid or electric van, you could go for a 'nearly new' one instead. This lets you enjoy a vehicle that's pretty much as good as new without breaking the bank, and means you can dodge the increased tax."
Daily Mirror
4 days ago
- Automotive
- Daily Mirror
Drivers of certain vehicles types face £1,732 tax hike
Car tax updates introduced this year will squeeze some drivers, according to analysis from Go Compare Buying one new vehicle will set buyers back an average of £1,732 more thanks to car tax changes, fresh analysis from Go Compare has revealed. The first-year Vehicle Excise Duty (VED) rates were raised earlier this year, putting hundreds of pounds onto bills. Charges are worked out based on emissions levels, hitting van owners particularly hard as most rely on petrol and diesel engines. Go Compare's calculations indicated that van drivers would fork out an additional £15.5 million during the opening six months of the new tax year, reports the Express This means van drivers face paying roughly £1,732 extra on Vehicle Excise Duty (VED) from April 2025. Expert Tom Banks has warned: "The increased VED rates will result in a big hit if you buy a brand-new van later this year, but there are things you can do to absorb the blow." He added: "The tax rates are based on CO2 emissions, so if you're able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands." Diesel van emissions frequently land them in the highest VED brackets, meaning these vehicle owners bear the brunt of the increases once more. Consequently, Go Compare cautions that owners might witness a steep average rise of £1,807 per vehicle during the first half of the 2025/26 financial year. The research reveals that new petrol van purchases will generate an additional £1.2 million, working out at an average of £1,354 more per petrol van. Following the alterations, purchasers choosing a hybrid van will only need to stump up an extra £252 in tax for road usage. These bills would be £1,500 less than those of diesel van drivers, although the initial outlay for hybrid models is expected to be significantly higher. On the flip side, opting for an electric van will only set you back an extra £10 annually for road usage, offering a substantial incentive for those with the means to invest in one. Specialists at Go Compare have highlighted that purchasing second-hand hybrid or electric vans could be a good move, offering more affordable prices alongside the tax perks. Tom added: "If you can't buy a suitable hybrid or electric van, you could go for a 'nearly new' one instead. This lets you enjoy a vehicle that's pretty much as good as new without breaking the bank, and means you can dodge the increased tax."
The Irish Sun
17-06-2025
- Automotive
- The Irish Sun
Little-known car insurance could save you £5,000 if your car is written off in accident – everything you need to know
A HIDDEN car insurance trick could save you £5,000 if your vehicle is written off. Motorists claiming on this insurance stand to gain big - as average payouts have tripled in the past four years. 2 GAP insurance payouts have nearly tripled in four years Credit: Alamy The average payout for Guaranteed Asset Protection - or GAP insurance - has soared from around £1,600 in 2021 to nearly £5,000 this year. This little-known insurance hack is rarely used - with a Financial Conduct Authority probe revealing that the average driver with GAP insurance makes a claim just once every 300 years. This product is mainly used to cover a potential shortfall between a car's value and the amount owed on finance if the vehicle is written off or stolen. Drivers who need to make a claim are likely to receive larger payouts, as those who've financed their cars currently face several financial risks. Read more on motors GAP insurance is used not only by those with financed cars but also by owners who bought cars outright—they can claim if the insurer's payout is less than what they paid for the car. Several factors have contributed to the soaring cash value of GAP claims. These include the fast depreciation of certain vehicles - especially EVs - and a rise in insurance write-offs caused by soaring repair costs and parts shortages. Rising motor thefts, targeting models like Range Rovers, have also driven up the cash value of GAP claims. Most read in Motors Experts say GAP insurance has shifted from a 'nice-to-have' policy to a 'vital financial safeguard' for today's car buyers. The increase in the value of payouts "underscores the growing financial risk faced by car owners" in 2025, according to MotorEasy, a leading car ownership platform. Ford is forced to immediately shut down factories and halt car production as CEO admits 'day to day' struggle for brand However, this type of insurance has been controversial in the past, as it's often sold by dealers alongside cars - sometimes with limited explanation or inflated prices. It's usually cheaper to buy GAP insurance through brokers. The increase in the value of payouts "underscores the growing financial risk faced by car owners" in 2025, according to MotorEasy, the leading car ownership platform. MotorEasy says the rise in average claim amounts is linked to the lasting effects of Covid-19. However, since so few motorists were using GAP policies, the Financial Conduct Authority launched an investigation in 2023 over concerns about their value. This led to many policies being withdrawn, with about 80 percent of products pulled from the market. Experts now advise car buyers to compare policies carefully and consider brokers rather than accepting dealer offers. Meanwhile, insurance experts have shared eight tips to help drivers Tom Banks, a coverage expert for This means you agree to pay more out of pocket if you make a claim, which lowers the amount the insurer has to cover. Tom explained: "You want to make sure that you will be able to afford to pay it should you need to make a claim. "But it's worth bearing in mind that choosing a higher voluntary excess will usually bring your car insurance premium down." What is car insurance? Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for... Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident. As a minimum, it protects you against any damage you case to other road users, the public or their property - these are called third parties. You only need to claim on your car insurance when an accident is your fault. If another motorist is to blame, their insurance should pay out instead. Car insurance, unlike home insurance, is a legal requirement and if you don't have it you can be fined up to £1,000. You can also have your vehicle seized and destroyed. However, you don't need to insure your car if it is classed as "off-road", or holds a statutory off road notification (SORN). The vehicle has to be kept on private land and not a public highway though. 2 The value of GAP has soared due to the depreciation of EVs and rising thefts Credit: Alamy Live News
Yahoo
03-06-2025
- Automotive
- Yahoo
10 ways young UK drivers can avoid high car insurance costs
Young people usually pay more in car insurance – sometimes a lot more – as they are statistically more likely to be involved in an accident and policies are based on overall risk. Those aged between 17 and 24 pay £828 on average, close to double the £476 typically paid by 25-to 49-year-olds, according to data from the comparison site However, comparing quotes can still save you hundreds of pounds. Comparison sites – others include MoneySuperMarket, and Compare the Market – let you easily see prices across dozens of insurers. Experts say getting quotes about three to four weeks before your policy is due to start often results in cheaper deals. Adding a parent, or any other experienced motorist as a named driver – as long as they drive the car occasionally – can help lower your premium. Insurers see this as spreading the risk as the vehicle is not just driven by someone with little experience. Look for someone with a clean licence and many years of no claims. Whatever you do, don't pretend someone else is the main driver – that is known as 'fronting', and is illegal. Generally, the smaller and less powerful the car, the cheaper it will be to insure. Go for something in a low insurance group (cars are put into one of 50 groups), typically the less expensive models with small engines and where the cost of parts and repairs are generally lower. The cheapest for 17- to 25-year-olds include Volkswagen's up! (averaging £576 a year), the Suzuki Alto (£597) and the Fiat 500 (£604), according to 'This shows it is smaller cars – specifically modest one-litre engine hatchbacks – which are taking the top spots as the cheapest cars to insure for young drivers,' says Tom Banks at Buying secondhand will keep costs down. Just make sure it is in good condition and has a full service history. 'Avoid making modifications, too, as these could lead to a hike in the price,' says Andrew Lee at the insurer Marmalade, which specialises in young drivers. A black box, or telematics, is a great way to reduce costs over time. A small device (or an app on your phone) tracks how safely you drive. If you stick to speed limits, avoid harsh braking and do not drive late at night, you could earn a lower insurance quote or repayments, adds Banks. 'If the data shows consistent safe driving, insurers might reward policyholders with benefits like lower premiums, cashback or a voucher, either during your policy term, or when it's time to renew,' he adds. According to the median price for a 19-year-old driver with a telematics policy is £864 a year. This compares with £1,096 without telematics. At age 23, the difference is only £21: £636 with telematics; £657 without. If you don't make a claim, you will earn a no-claims discount, which can further reduce costs. However, there are some potential disadvantages to a black box. It will record poor habits and so could result in higher premiums. 'If you don't drive carefully, or within pre-arranged limits of your policy, you could end up paying more,' Banks says. If you are already insured, do not just accept your renewal quote. Use comparison sites to see what others are charging for the same, or similar, cover, then go back to your current insurer and see whether it will match, or beat, those prices. Monthly payments may be easier for some younger people to handle, but they often involve paying interest on the premiums – sometimes as much as 30% APR. If you can afford to pay in one go, it is nearly always cheaper. If an annual payment is not possible, it is worth looking into alternatives such as a 0% interest credit card (provided you can pay it off before interest kicks in). Or set aside money each month. Where, and how, you park matters. Insurers like driveways more than street parking, so prices tend to fall if you have access to one. If your building has designated private parking, whether gated or residents only, that is also usually rated as safer than street parking. If you have a fob-controlled or gated car park, even better. Mention it when getting quotes. And adding a steering wheel lock, immobiliser or dashcam can help. The more secure your car, the less of a risk it poses – and the more likely something will be shaved off your premium. What you put as your job title can affect how much you pay – sometimes by hundreds of pounds. That's because data based on years of claims is used. Some professions are flagged as higher risk, either because of how often people in those jobs claim, or the way they are perceived to use their cars. Many forms include a dropdown menu for job titles, and choosing a different, but still legitimately accurate, title – such as 'writer' instead of 'journalist' – could lower your premium. Make sure it is truthful. False information could invalidate your policy. MoneySuperMarket has a 'car insurance job picker' to help you identify the role that best describes what you do, and find the average premium for each job. Your excess is what you pay towards a claim before your insurer chips in. It is usually split into two parts: a compulsory excess, which is set by your insurer and non-negotiable; and a voluntary excess, the extra you choose to pay on top. 'The most common excess chosen by our customers is £250,' says Rhydian Jones, a car insurance expert at 'But opting for a higher – or sometimes even lower – excess can help reduce the overall cost of your cover. Experiment with your excess amount when comparing quotes to see if you could save.' The higher the voluntary excess, the lower your premium tends to be. 'Make sure you can afford to pay the excess amount you have stated,' says Lee, otherwise you could be left in a tricky situation. The discount increases with each year you drive claim-free. After just one year, you could get a 20% to 30% discount. After five years, some insurers will knock 60% or more off your premium. Your no-claims discount is tied to you, not the car – so if you change your vehicle or insurer, you can usually transfer it. Even if you have an accident, it will not always wipe out your discount – especially if you are not at fault and the other driver's insurer pays. It is worth asking your insurer to confirm how much your premium would go up by if you made a claim.
Scottish Sun
18-05-2025
- Automotive
- Scottish Sun
Ten cheapest cars to insure in UK for 2025.. including surprisingly plush saloon & sporty convertible
The model of the car is just one of many factors insurers consider GOT YOU COVERED Ten cheapest cars to insure in UK for 2025.. including surprisingly plush saloon & sporty convertible Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A GROUP of car insurance experts have revealed the cheapest cars to insure in the UK in 2025 – with some surprising models included. A new report from Car Insurance shows that it's not just small, low-powered models that help you save on vehicle cover. Sign up for Scottish Sun newsletter Sign up 3 The iconic Mazda MX-5 tops list of the cheapest cars to insure Credit: Getty 3 The plusg, long-forgotten Saab 9-3 has also made the list Credit: Getty 3 Joining the top 10 are several small, low cost cars as well, such as the SmatFourtwo Credit: Getty The comparison site recently shared with Sun Motors their latest car insurance price index, revealing that the average cost of car insurance is £450. Typically, smaller, less powerful cars with good safety credentials are the cheapest to insure, such as the ever-popular Peugeot 206 and the compact Smart ForTwo. Unsurprisingly, both feature on list. However, there are a few unexpected entries, including the iconic Mazda MX-5 - which takes the top spot, costing an average of £250 to insure. Long dubbed 'the poster child for convertible cars', the MX-5 has often been recognised as a mechanically reliable choice that's also great fun to drive. The long-forgotten Saab 9-3, praised as a comfortable and practical saloon that also boasts good looks and an excellent safety record, also makes the list. Saab's former Swedish rivals Volvo are also on the list with the S40, costing just £290 to insure on average. top 10 cheapest cars to insure 1 Mazda MX-5 - £250 2 Peugeot 206 - £255 3 Citroen Xsara - £256 4 Smart Fortwo - £260 5 Toyota IQ - £265 6 Fiat Panda - £279 7 Peugeot RCZ - £279 8 Vauxhall Agila - £290 9 Saab 9-3 - £290 10 Volvo S40 - £290 Speaking to Sun Motors, Tom Banks, a car insurance expert at explained that the model of the car is just one of many factors insurers consider. He said: 'When an insurer offers you a quote for your car insurance, they take into account a whole range of factors – your age, the area you live in, and where your car is parked can all affect the price, as well as the type of car you drive. 'Generally speaking, more powerful, sporty cars with larger engines are more expensive to insure, while cars with smaller engines are typically more affordable to insure and run. 'While it's unlikely to be cost-effective to change your car solely to lower your insurance premium, if you're in the market for a new car anyway, it's definitely worth researching how much different models cost to insure. 'And if you're not planning to buy a new car but your premiums have increased, there are certain steps you can take to try to reduce the cost of insuring your vehicle.'
