During 2021 there will be an increase in some taxes and specifically, one of these increases will touch the pockets of all drivers -although be careful, because it affects all insurance whether car, motorcycle, home, etc … -.
The rise of Tax on Insurance Premiums (IPS) it will suppose for the pockets a rise that will be around 2%. To date, the IPS was 6% and as of this 2021 it will be 8%.
The increase will affect car, motorcycle, home or life policies – although in the latter it will affect only the complementary coverage to the main death coverage.
According to the insurance comparator Acierto.com, 95% of Spanish families will be affected.
Car or motorcycle insurance will be the most affected branch as it is the most abundant among the policies contracted by the Spanish, something that does not surprise us if we take into account that it is a mandatory policy. On the other hand, it must be remembered that in Spain there are more than 34 million vehicles on the road, and that many families have more than one.
Regarding the home insurance and although they are not mandatory, there are currently almost 18 million insured homes. Here, again, there is another factor to be reckoned with: second homes.
This increase of 2% will mean an increase in insurance that can be between 25 and 30 euros per year on average and it must be borne in mind that insurers – which will also be affected by the tax – will end up passing on the increase to the consumer.
Beyond what has been said, we cannot lose sight of the fact that this year accident data used by insurers to calculate the risk and premium of their clients may vary. Not only by car – perhaps the most obvious result of mobility restrictions – but also in other branches. For example, it is estimated that COVID-19 will triple the accident rate in the rental sector this year. And something similar could happen in the case of home insurance, as urgent breakdowns grew by up to 74% during confinement.