Carrot calls on government to cut IPT for young drivers using telematics products

Broker says telematics insurance reduces young driver accidents by over 40% and adds that it saves on average £5m each year in lower claims costs.

Carrot Insurance has urged MPs to remove insurance premium tax (IPT) for young drivers using telematics-based insurance policies.

The broker explained it had submitted evidence to the House of Commons Transport Committee, which is holding an inquiry into young drivers and how to reduce accident frequency in this age group. 

Carrot Insurance managing director Norrie Erwin argued that the government should encourage novice drivers to use a telematics product for their first year, urging it to do