General insurance tools
Cross-cutting tools that apply across all types of UK insurance — understanding what Insurance Premium Tax adds to any premium, and the true cost of paying monthly versus annually.
Insurance Premium Tax Calculator
Add IPT at 12% or 20% to a net premium, or extract it from a gross figure. Includes a policy-type helper that suggests the correct rate.
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Monthly vs Annual Premium Calculator
See how much extra you pay by choosing monthly instalments over an annual premium, and find the implied APR.
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What these tools do
Insurance Premium Tax
IPT is included in every UK general insurance premium — it's not shown separately like VAT. This tool lets you add 12% or 20% IPT to a net premium, or extract the tax from a gross premium quote. A policy-type helper shows which rate applies to common insurance types.
Open the IPT calculator →Monthly vs annual premium
Most insurers charge more in total when you pay monthly. This tool calculates the extra annual cost and the implied APR — the effective interest rate built into the monthly plan. Knowing the real cost helps you decide whether paying upfront or using interest-free credit elsewhere makes more sense.
Open the monthly vs annual calculator →These tools apply to all insurance types
IPT and payment structure apply regardless of the type of insurance you're buying. You may also find the specific calculators for each insurance category useful:
Frequently asked questions
IPT is a UK government tax on general insurance premiums. The standard rate is 12% and applies to most personal and commercial policies. A higher rate of 20% applies to certain products such as travel insurance bundled with goods, and mechanical or electrical appliance cover. Life insurance and income protection are exempt.
In most cases, yes — paying monthly usually costs more overall because insurers charge an implicit interest rate on instalment plans. Our monthly vs annual calculator shows you exactly how much more and the implied APR, so you can compare it with alternative uses of the cash.
The higher 20% IPT rate applies to: travel insurance sold with related goods or services; vehicle insurance sold with a vehicle (e.g. dealer-arranged cover); domestic appliance or electronic device insurance; and mechanical and electrical appliance cover. Standard travel insurance bought directly typically attracts the 12% standard rate.
Life insurance, income protection (permanent health insurance), and commercial ships and aircraft insurance are exempt from IPT. Reinsurance is also not subject to IPT. Premiums for these products are quoted as net figures with no tax on top.