The average costs of car policy will reach a record high-pitched as a higher rate of charge on payments comes into effect, pushing up premiums 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%, lending about PS15 to the normal plan. IPT has increased rapidly in recent years, with motorists paying only 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 auto insurance premium arrives despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average program overhead based on" hundreds of paraphrases per month" with the average based on" the top five cheapest prices presented to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment changes to the room apportions are calculated for gondola gate-crash gashes or botched medical operations .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation allotments 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 arriving the NHS with an additional annual PS1bn invoice .
Simon McCulloch of comparethemarket.com mentioned:" This is somewhat of a watershed minute for car coverage. The cost of an average programme have increased in 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 tariff over the past two years. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also contributed substantial amounts to the average person's program ."
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Motorists seeking to avoid large-scale increases in their premiums are always should be encouraged to supermarket around, with numerous stunned to find that buying thorough envelop is now typically cheaper than third-party flaming and theft programmes .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover furnish discounts of 10-12. 5% for motorists who install the manoeuvre, of which about 3m are believed to be in use in UK autoes. The cameras are particularly useful for drivers hoping to keep their no-claims bonus after road traffic accidents where they can use video suggestion to picture they were not at fault .
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