The average cost of vehicle policy will touch a record high as a higher charge of levy on premiums comes into effect, pushing up prices 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 program. IPT has increased rapidly in recent years, with motorists _empty_ time 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 car insurance premium becomes despite efforts to tackle the bagging costs of whiplash payouts. Comparethemarket.com said it calculated the average programme penalty based on" hundreds of thousands of quotes 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 modification of the behavior gives are calculated for gondola accident harms 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 allotments for serious personal injuries, to ensure inflation does not weaken the future quality of a payout.
But antagonists said the change will add up to PS75 to automobile insurance premiums, as well as mooring the NHS with an additional annual PS1bn legislation .
Simon McCulloch of comparethemarket.com announced:" This is somewhat of a watershed moment for automobile assurance. The costs 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 excise over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also supplemented substantial amounts to the average person's policy ."
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Motorists seeking to avoid large-hearted increases in their fees are always advised to patronize around, with many startled was discovered that buying comprehensive report is now usually less costly than third-party burn and fraud programmes .
One recent invention is rejects for dashcams. Insurers such as Axa and Swiftcover render rejects of 10-12. 5% for drivers who install the design, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video exhibit to demo they were not at fault .
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