Aviva are set to launch a brand new car insurance policy aimed primarily at large businesses in both the private and public sector.

The new scheme will offer tailored car insurance policies for employees who are leasing a company car. The policy is expected to be popular because of the tax benefits it provides.

The company will receive the vehicle from the leasing company at a price net of tax, rather than the full sale price. The saving the company makes from leasing the car at a reduced rate will then be passed onto the employee in the form of a reduced rate for the car.

Repayments for the car are taken directly out of the employee’s salary meaning there is saving to be made on National Insurance payments and also income tax.

These types of salary exchange benefits are reported to be especially popular during this time of economic uncertainty, with a rise in the number people signing up to such schemes during the downturn. It’s also another way in which employers can create extra benefits for their employees.

With the new Aviva block car insurance policy, there is no limit on the number of cars included in the policy which will be particularly appealing to large organisations with an entire fleet of company cars.

Aviva are planning to have the new car insurance policy up and running by the end of the year.