The median cost of auto guarantee will punch a record high-pitched as a higher proportion of duty on payments comes into effect, propagandizing up premiums even further .
According to comparison website comparethemarket.com, the average program will reach PS800 next month, a rise of 14% on a year more quickly and PS200 more than in June 2015.
The rate of insurance premium Tax( IPT) will rise on Thursday from 10% to 12%, adding about PS15 to the usual plan. IPT has increased rapidly in recent years, with motorists paying merely 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 gondola insurance premium approaches despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average program cost based on" hundreds of thousands of mentions per month" with the average based on" the top five cheapest premiums introduced to "consumers interests", where a consumer has sounded through to buy ".
The insurance industry has been left stupefied bygovernment changes to the direction gives are calculated for auto slam hurts or botched medical procedures .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation accolades for serious personal injuries, to ensure inflation does not weaken the future quality of a payout.
But opposings said the change will add up to PS75 to car insurance premiums, as well as landing the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com spoke:" This is somewhat of a watershed instant for auto guarantee. The costs of an average program has risen by around a third in two years .
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" One of its most important causes of these rises is the doubling of insurance premium imposition over the past two years. Similarly, the 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 big-hearted increases in their fees are always advised to browse around, with numerous stunned was discovered that buying comprehensive make is now typically cheaper than third-party barrage and stealing policies .
One recent invention is deductions for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for operators who install the device, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for motorists hoping to keep their no-claims bonus after an accident where they can use video attest to depict they were not at fault .
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