Use car insurance

Check which band your car is in and how much it will cost
Don't forget to check how much 'showroom tax' you'll pay
Keep updated on all the latest changes to the cost of car tax

The price of UK car tax changed following the 2011 Budget, so here is the full guide to road tax bands and the cost of the tax disc for each band.
The cost of Vehicle Excise Duty (VED) or car tax will rise by the cost of inflation from April 1, 2011.
However, cars that emit less than 130g/km of CO2 will continue to pay zero first year road tax (so-called showroom tax), while cars emitting less than 100g/km CO2 will also pay zero road tax.
Cars in road tax bands B and C will continue to pay £20 and £30 a year road tax respectively, while all other cars face higher bills for road tax.
As well as the new car tax costs, new car buyers must pay a one-off first-year 'showroom tax'. This means buyers have to pay up to £1,000 in the first year of purchase for cars with high emissions, while people who buy a new car with emissions lower than 130g/km of CO2 will pay nothing in the first year.

The number of tax bands increased from seven to 13 in 2009, with increased penalties for the most polluting cars, followed by further changes in April 2010.
Greener drivers are rewarded with lower tax bills, but owners of high-emission cars will be hit hard.
How road tax is calculated
Whereas car tax on all models registered before 1st March 2001 is based on engine size, cars registered on or after that date are taxed according to their emissions.
So, for older cars, there’s one rate for engines smaller than and including 1549cc and one for engine sizes larger than 1549cc.
With newer models, annual car tax rates are based on cars’ green credentials and currently there are 13 tax bands. Cars in band A are greener (and therefore cheaper to tax) than band M.
Essentially, the lower the emissions, the cheaper the tax disc.
When filling in your form in order to get a quote for car insurance, you will be asked as to the type of use – that is, what exactly the insured will be using the car for. The type of use tends to have a bearing on the risk perceived by the insurers, and could affect the premium accordingly. So, for example, a business user may be seen as presenting a greater risk than a purely social and domestic user. This is because the business user is likely to spend more time on the road, including in heavy traffic and unfamiliar routes, which will increase the chance of third party claims.