The average cost of automobile policy will reach a record high as a higher frequency of levy on premiums comes into effect, propagandizing up expenditures 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%, adding about PS15 to the ordinary plan. IPT has increased rapidly in recent years, with motorists _empty_ 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 here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average automobile insurance premium sees despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average programme expense based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest prices introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment modification of the lane honors 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 awards for serious personal injuries, to ensure inflation does not diminish the future importance of a payout.
But foes said the change will add up to PS75 to automobile insurance premiums, as well as landing the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com added:" This is somewhat of a watershed minute for car policy. The costs of an average plan 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 duty over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore included substantial amounts to the average person's policy ."
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Motorists seeking to avoid large-scale increases in their payments are always advised to store around, with many surprised to find that buying thorough make is now generally cheaper than third-party shoot and crime policies .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover furnish dismisses of 10-12. 5% for moves who install the invention, 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 show "theyre not" at fault .
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