Arval to absorb insurance tax increase on insured leased cars
The move applies to new or existing customers ordering an insured vehicle from Arval before 1 November and follows the announcement in the Summer Budget of the 3.5% Government-imposed increase.
The leasing and fleet management specialist said it has “decided to shield customers from this increase at a time when premiums across the motor insurance sector have already increased by 5.5% in the past 12 months according to The AA’s British insurance premium index”.
Elliott Woodhead, director of SME & partnerships, said: “At a time when the premiums on a whole range of insurances are likely to increase, we are keen to give our customers some respite and certainty in relation to their company vehicle costs. As a result of this announcement we expect to see increased demand for our products as we get closer to the 1 November implementation date.”
Arval, in conjunction with Greenval Insurance, offers two motor insurance products. Arval Total Care is Arval’s optional package allowing customers to opt for an insured lease vehicle. Said to be a first in the UK market, the full package includes: contract hire with third party insurance, own damage protection, glass damage protection, maintenance management, breakdown assistance and accident management. While the Fleet Insurance Policy allows customers to insure their entire vehicle fleet simply and cost effectively, including those cars and vans that are not funded by Arval.