Insurance Premium Tax (IPT), similar to Value Added Tax (VAT), is a tax applied by the government on insurance premiums. There are two rates of IPT, depending on the type of product covered by the insurance:
Insurance Premium Tax
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What is Insurance Premium Tax (IPT)?
What is Insurance Premium Tax (IPT)?
Mobile phone insurance is subject to the standard rate of 12 per cent because mobile phones are classified predominantly as a communication device. However, connected device insurance is subject to the higher rate of 20 per cent because tablets and other connected devices are considered ‘electrical domestic appliances’ and not primarily a communication device.
What is the history of IPT?
What is the history of IPT?
IPT was first introduced in 1997 by the UK government to raise additional revenue from the insurance sector. Since then, the standard rate of IPT has tripled:
The higher rate of IPT, since introduced, has always been in line with VAT – currently at 20 per cent.
How does EE display insurance pricing and IPT?
How does EE display insurance pricing and IPT?
To be transparent with our pricing, we split IPT out from the total monthly insurance premiums, so you’re aware how much of what you are paying each month is tax. This also means that if the government ever increases IPT, you’ll be able to see how this increases your total monthly insurance payment.
Mobile phone insurance
| Standard pricing | |||
|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £15.00 | £1.80 | £16.80 |
| Full Cover | £12.50 | £1.50 | £14.00 |
| Full Cover | £11.00 | £1.32 | £12.32 |
| Full Cover | £9.00 | £1.08 | £10.08 |
| Full Cover | £7.00 | £0.84 | £7.84 |
| Damage Cover | £11.00 | £1.32 | £12.32 |
| Damage Cover | £9.00 | £1.08 | £10.08 |
| Damage Cover | £7.00 | £0.84 | £7.84 |
| Damage Cover | £5.00 | £0.60 | £5.60 |
| Damage Cover | £3.00 | £0.36 | £3.36 |
Connected device (e.g. tablet) insurance
| Standard pricing | |||
|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £8.00 | £1.60 | £9.60 |
| Full Cover | £6.00 | £1.20 | £7.20 |
| Full Cover | £4.00 | £0.80 | £4.80 |
| Damage Cover | £6.00 | £1.20 | £7.20 |
| Damage Cover | £4.00 | £0.80 | £4.80 |
| Damage Cover | £2.00 | £0.40 | £2.40 |
What is a loyalty discount?
What is a loyalty discount?
If you are an existing insurance customer and decide to take insurance again when you upgrade your device, you’ll receive a 10 per cent loyalty discount on your total monthly premium. For example:
Mobile phone insurance
| Standard pricing | With 10% loyalty discount | |||||
|---|---|---|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £15.00 | £1.80 | £16.80 | £13.50 | £1.62 | £15.12 |
| Full Cover | £12.50 | £1.50 | £14.00 | £11.25 | £1.35 | £12.60 |
| Full Cover | £11.00 | £1.32 | £12.32 | £9.90 | £1.19 | £11.09 |
| Full Cover | £9.00 | £1.08 | £10.08 | £8.10 | £0.97 | £9.07 |
| Full Cover | £7.00 | £0.84 | £7.84 | £6.30 | £0.76 | £7.06 |
| Damage Cover | £11.00 | £1.32 | £12.32 | £9.90 | £1.19 | £11.09 |
| Damage Cover | £9.00 | £1.08 | £10.08 | £8.10 | £0.97 | £9.07 |
| Damage Cover | £7.00 | £0.84 | £7.84 | £6.30 | £0.76 | £7.06 |
| Damage Cover | £5.00 | £0.60 | £5.60 | £4.50 | £0.54 | £5.04 |
| Damage Cover | £3.00 | £0.36 | £3.36 | £2.70 | £0.32 | £3.02 |
Connected device (e.g. tablet) insurance
| Standard pricing | With 10% loyalty discount | |||||
|---|---|---|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £8.00 | £1.60 | £9.60 | £7.20 | £1.44 | £8.64 |
| Full Cover | £6.00 | £1.20 | £7.20 | £5.40 | £1.08 | £6.48 |
| Full Cover | £4.00 | £0.80 | £4.80 | £3.60 | £0.72 | £4.32 |
| Damage Cover | £6.00 | £1.20 | £7.20 | £5.40 | £1.08 | £6.48 |
| Damage Cover | £4.00 | £0.80 | £4.80 | £3.60 | £0.72 | £4.32 |
| Damage Cover | £2.00 | £0.40 | £2.40 | £1.80 | £0.36 | £2.16 |
What is a multi-policy discount?
What is a multi-policy discount?
If you have insurance on two or more devices on the same account, you will benefit from a ten per cent multi-policy discount. This is applied to the total monthly insurance payment (premium + IPT). The prices will be the same as above, unless you're a small business customer with ten or more insured devices on the same account.
Find more information on insurance for small business customers.
Can I get a loyalty and multi-policy discount?
Can I get a loyalty and multi-policy discount?
If you’re eligible for both loyalty and multi-policy insurance discounts, the loyalty discount will be applied to your total monthly insurance payment and then the multi-policy discount will be applied to the discounted monthly insurance payment total. For example:
Mobile phone insurance
| Standard pricing | With 10% loyalty discount + 10% multi-policy discount | |||||
|---|---|---|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £15.00 | £1.80 | £16.80 | £12.15 | £1.46 | £13.61 |
| Full Cover | £12.50 | £1.50 | £14.00 | £10.13 | £1.22 | £11.35 |
| Full Cover | £11.00 | £1.32 | £12.32 | £8.91 | £1.07 | £9.98 |
| Full Cover | £9.00 | £1.08 | £10.08 | £7.29 | £0.87 | £8.16 |
| Full Cover | £7.00 | £0.84 | £7.84 | £5.67 | £0.68 | £6.35 |
| Damage Cover | £11.00 | £1.32 | £12.32 | £8.91 | £1.07 | £9.98 |
| Damage Cover | £9.00 | £1.08 | £10.08 | £7.29 | £0.87 | £8.16 |
| Damage Cover | £7.00 | £0.84 | £7.84 | £5.67 | £0.68 | £6.35 |
| Damage Cover | £5.00 | £0.60 | £5.60 | £4.05 | £0.49 | £4.54 |
| Damage Cover | £3.00 | £0.36 | £3.36 | £2.43 | £0.29 | £2.72 |
Connected device (e.g. tablet) insurance
| Standard pricing | With 10% loyalty discount + 10% multi-policy discount | |||||
|---|---|---|---|---|---|---|
| Monthly premium | Insurance Premium Tax | Total monthly insurance payment | Monthly premium | Insurance Premium Tax | Total monthly insurance payment | |
| Full Cover | £8.00 | £1.60 | £9.60 | £6.48 | £1.30 | £7.78 |
| Full Cover | £6.00 | £1.20 | £7.20 | £4.86 | £0.97 | £5.83 |
| Full Cover | £4.00 | £0.80 | £4.80 | £3.24 | £0.65 | £3.89 |
| Damage Cover | £6.00 | £1.20 | £7.20 | £4.86 | £0.97 | £5.83 |
| Damage Cover | £4.00 | £0.80 | £4.80 | £3.24 | £0.72 | £3.89 |
| Damage Cover | £2.00 | £0.40 | £2.40 | £1.62 | £0.32 | £1.94 |
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Last updated: 11/2/2019
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