The median cost of auto policy will hit a record high-pitched as a higher proportion of tax on payments comes into effect, pushing up rates even further .
According to comparison website comparethemarket.com, the average program 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%, including about PS15 to the typical policy. IPT has increased rapidly in recent years, with motorists compensating just 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 gondola insurance premium happens despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest premiums presented to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left dazed bygovernment modification of the lane accolades are calculated for vehicle slam hurts or botched medical procedures .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation honors for serious personal injuries, to ensure inflation does not weaken the future evaluate of a payout.
But antagonists said the change will add up to PS75 to automobile insurance premiums, as well as shoring the NHS with an additional annual PS1bn greenback .
Simon McCulloch of comparethemarket.com said:" This is somewhat of a watershed instant for car assurance. The costs of an average program 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 tariff 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 big increases in their premiums are always advised to browse around, with numerous stunned to find that buying thorough make is now generally less costly than third-party flame and stealing programmes .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover offer discounts of 10-12. 5% for operators who install the device, of which about 3m are believed to be in use in UK autoes. The cameras are particularly useful for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video testify to reveal "theyre not" at fault .
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