The average cost of automobile assurance will reach a record high as a higher proportion of levy on premiums comes into effect, pushing up costs so far .
According to comparison website comparethemarket.com, the average plan 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%, including about PS15 to the ordinary plan. IPT has increased rapidly in recent years, with motorists paying just 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 car insurance premium stops despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of repeats per month" with the average based on" the top five cheapest expenditures presented to a consumer, where a consumer has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the action awards are calculated for gondola disintegrate injuries or botched medical actions .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation apportions for serious personal injuries, to ensure inflation does not deteriorate the future importance of a payout.
But opposings said the change will add up to PS75 to gondola insurance premiums, as well as landing the NHS with an additional annual PS1bn greenback .
Simon McCulloch of comparethemarket.com added:" This is somewhat of a watershed instant for gondola insurance. The cost of an average programme 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 imposition over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also contributed substantial amounts to the average person's programme ."
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Motorists seeking to avoid large-scale increases in their premiums are always advised to browse around, with numerous startled to find that buying thorough blanket is now generally cheaper than third-party volley and crime programmes .
One recent innovation is rebates for dashcams. Insurers such as Axa and Swiftcover render rejects of 10-12. 5% for operators who install the maneuver, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after an accident where they can use video prove to demo they were not at fault .
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