The median costs of gondola policy will make a record high as a higher pace of taxation on premiums comes into effect, pushing up premiums so far .
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%, computing about PS15 to the conventional 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, said here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average auto insurance premium calls despite efforts to tackle the bagging cost of whiplash payouts. Comparethemarket.com said it calculated the average policy overhead based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest costs introduced to "consumers interests", where "consumers interests" has sounded through to buy ".
The insurance industry has been left stupefied bygovernment modification of the way honors are calculated for auto sound gashes or botched medical business .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation gives for serious personal injuries, to ensure inflation does not erode the future ethic of a payout.
But foes said the change will add up to PS75 to vehicle insurance premiums, as well as arriving the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed minute for auto coverage. The costs of an average policy 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 levy over the past two years. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore lent substantial amounts to the average person's plan ."
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Motorists seeking to avoid big-hearted increases in their payments are always advised to store around, with numerous astonished was discovered that buying thorough include is now often less costly than third-party flaming and stealing policies .
One recent invention is rebates for dashcams. Insurers such as Axa and Swiftcover render dismisses of 10-12. 5% for moves who install the manoeuvre, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for moves hoping to keep their no-claims bonus after an accident where they can use video ground to show they were not at fault .
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