We have recently added a blog post titled “CO2 Vehicle Emissions Tax, Double Cabs and Car Insurance” This provided some important insights on the history behind the recent announcement by the Treasury on the CO2 emissions tax and especially the intention to include double cabs in the definition.
The new carbon emissions tax, due to come into effect from 1 September 2010. This tax will be levied on the purchase price of any new car sold on or after the above date, at a rate of R75 per gram of CO2 emitted per kilometre, over and above 120 g/km of CO2 emitted.
A very important component of car insurance is the vehicle that you drive – and perhaps more important the value of that vehicle – or the cost of the vehicle as an insurable interest!
When we are searching for cheaper car insurance – we should keep in mind that the value of the vehicle plays an important role in calculating the car insurance premium. The more expensive to replace and repair that vehicle – the more expensive the car insurance premium!!
So how will this CO2 emissions tax impact on the price of the vehicle to be insured?
I have come across an interesting story by Steven Jones on Moneyweb, and we would like to share some of his insights and especially the graphs quoted from Car Magazine. We would like to recognize as the source – CAR Magazine (August 2010 issue)