The average cost of car assurance will hit a record high-pitched as a higher proportion of duty on fees comes into effect, pushing up expenditures even further .
According to comparison website comparethemarket.com, the average plan 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%, including about PS15 to the ordinary policy. 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 here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average gondola insurance premium derives despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average programme overhead based on" hundreds of thousands of mentions per month" with the average based on" the top five cheapest tolls introduced to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left stupefied bygovernment changes to the mode bestows are calculated for auto hurtle hurts 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 awards for serious personal injuries, to ensure inflation does not weaken the future quality of a payout.
But adversaries said the change will add up to PS75 to vehicle insurance premiums, as well as shoring the NHS with an additional annual PS1bn statute .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed moment for vehicle insurance. The costs of an average policy have increased in 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 tax over the past two years. Evenly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also computed substantial amounts to the average person's program ."
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Motorists seeking to avoid big increases in their fees are always should be encouraged to patronize around, with many astounded was discovered that buying exhaustive cros is now usually cheaper than third-party flaming and crime programs .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover furnish 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 useful for motorists hoping to keep their no-claims bonus after an accident where they can use video testify to show they were not at fault .
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