The average cost of vehicle assurance will smack a record high-pitched as a higher proportion of tax on payments comes into effect, pushing up prices 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%, adding about PS15 to the conventional programme. 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 the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average automobile insurance premium succeeds despite efforts to tackle the bagging costs of whiplash payouts. Comparethemarket.com said it calculated the average policy payment based on" hundreds of thousands of repeats per month" with the average based on" the top five cheapest costs introduced to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left stunned bygovernment modification of the direction apportions are calculated for auto crash injuries or botched medical activities .
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 diminish the future ethic of a payout.
But opponents said the change will add up to PS75 to automobile insurance premiums, as well as mooring the NHS with an additional annual PS1bn invoice .
Simon McCulloch of comparethemarket.com replied:" This is somewhat of a watershed moment for car guarantee. The costs of an average program has risen by 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 excise over the past two years. Equally, the most recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore supplemented substantial amounts to the average person's programme ."
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Motorists seeking to avoid large-hearted increases in their payments are always advised to store around, with numerous stunned to find that buying thorough cover is now generally less costly than third-party shoot and fraud programmes .
One recent invention is discounts for dashcams. Insurers such as Axa and Swiftcover give discounts of 10-12. 5% for operators who install the machine, of which about 3m are believed to be in use in UK automobiles. The cameras are particularly useful for moves hoping to keep their no-claims bonus after an accident where they can use video indicate to establish "theyre not" at fault .
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