Aviva launches salary-sacrifice car insurance scheme
Aviva is launching a block car insurance policy for businesses that operate an employee salary-sacrifice car scheme.
Under such a scheme, the employer receives the vehicle from the leasing company, paying net of tax, rather than the full price.
This saving is then passed on to the employee, who receives a new car at a better price than if they went independently to the leasing company.
Repayment is taken directly from the employee’s salary, usually over two or three years, allowing the employee to save on national insurance and income tax, up to the value of the scheme.
Aviva’s block insurance package, which will be available later this month, has no limit on the number of vehicles covered by the policy.
Although flexible for any size or type of business, the new policy is likely to be most attractive to companies with large fleets, whether FTSE-listed, privately-owned or local authorities.
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