The average costs of gondola coverage will affect a record high-pitched as a higher proportion of tax on payments comes into effect, pushing up rates even further .
According to comparison website comparethemarket.com, the average policy 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%, contributing about PS15 to the conventional 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, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average vehicle insurance premium lands despite efforts to tackle the bagging costs of whiplash payouts. Comparethemarket.com said it calculated the average policy expense based on" hundreds of repeats per month" with the average based on" the top five cheapest tolls presented to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left stupefied bygovernment modification of the room honors are calculated for automobile sound harms 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 awards for serious personal injuries, to ensure inflation does not deteriorate the future appraise of a payout.
But opposings said the change will add up to PS75 to vehicle insurance premiums, as well as shoring the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com supposed:" This is somewhat of a watershed instant for car policy. The cost 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. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also added substantial amounts to the average person's policy ."
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Motorists seeking to avoid big increases in their payments are always advised to store around, with numerous amazed was discovered that buying thorough make is now frequently cheaper than third-party ardor and fraud policies .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for drivers who install the machine, of which about 3m are believed to be in use in UK autoes. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video manifestation to picture they were not at fault .
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