Fears of rise in uninsured drivers as insurance tax receipts soar

Consumers paid a total of nearly 9% more in a tax on insurance premiums last year (Alamy/PA) -

Consumers paid a total of nearly 9% more in a tax on insurance premiums last year, leading to fears of drivers becoming priced out of policies.

The AA, which conducted the research, urged the Treasury to cut the rate of insurance premium tax (IPT) on motor policies by a quarter, with a 50% reduction for newly qualified drivers.