The median cost of vehicle assurance will make a record high-pitched as a higher frequency of taxation on premiums comes into effect, pushing up costs 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%, computing about PS15 to the ordinary program. IPT has increased rapidly in recent years, with motorists compensating precisely 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 car insurance premium extends despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average plan expense based on" hundreds of mentions 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 stupefied bygovernment modification of the mode gifts are calculated for automobile clang injuries or botched medical runnings .
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 gnaw the future price of a payout.
But antagonists said the change will add up to PS75 to vehicle insurance premiums, as well as arriving the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com supposed:" This is somewhat of a watershed time for automobile insurance. The cost of an average plan has risen by 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 duty over the past two years. Evenly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore added substantial amounts to the average person's plan ."
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Motorists seeking to avoid big increases in their fees are always advised to supermarket around, with many caught was discovered that buying comprehensive treat is now frequently cheaper than third-party fire and steal programmes .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover offer rejects of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for moves hoping to keep their no-claims bonus after an accident where they can use video exhibit to substantiate "theyre not" at fault .
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