The median cost of car insurance will affect a record high-pitched as a higher frequency of levy on payments comes into effect, pushing up costs even further .
According to comparison website comparethemarket.com, the average policy will reach PS800 next month, a rise of 14% on a year earlier and PS200 more than in June 2015.
The rate of insurance premium Tax( IPT) will rise on Thursday from 10% to 12%, supplementing about PS15 to the ordinary policy. IPT has increased rapidly in recent years, with motorists _empty_ just 6% in 2015 before a series of hikes .
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The tax has generated about PS13bn over the past five years old, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average car insurance premium calls despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average plan rate based on" hundreds of thousands of paraphrases per month" with the average based on" the top five cheapest rates presented to "consumers interests", where a consumer has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the road bestows are calculated for vehicle disintegrate traumata or botched medical actions .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation awardings for serious personal injuries, to ensure inflation does not deteriorate the future ethic of a payout.
But dissidents said the change will add up to PS75 to auto insurance premiums, as well as landing the NHS with an additional annual PS1bn legislation .
Simon McCulloch of comparethemarket.com responded:" This is somewhat of a watershed instant for gondola assurance. The costs of an average program has risen by around a third in two years .
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" One of the most prominent causes of these rises is the doubling of insurance premium imposition over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore included substantial amounts to the average person's plan ."
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Motorists seeking to avoid big increases in their payments are always advised to patronize around, with numerous caught was discovered that buying comprehensive flood is now often cheaper than third-party volley and theft programs .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for operators who install the invention, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for moves hoping to keep their no-claims bonus after road traffic accidents where they can use video proof to prove "theyre not" at fault .
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