The average cost of vehicle guarantee will touch a record high as a higher rate of levy on fees comes into effect, propagandizing up rates so far .
According to comparison website comparethemarket.com, the average program been able to 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 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, said here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average car insurance premium derives despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average programme expense based on" hundreds of thousands of paraphrases per month" with the average based on" the top five cheapest premiums presented to "consumers interests", where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment changes to the room allotments are calculated for car slam hurts or botched medical operations .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation gives for serious personal injuries, to ensure inflation does not gnaw the future cost of a payout.
But antagonists said the change will add up to PS75 to gondola insurance premiums, as well as shoring the NHS with an additional annual PS1bn greenback .
Simon McCulloch of comparethemarket.com responded:" This is somewhat of a watershed instant for auto insurance. The costs 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 levy over the past two years. Evenly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore lent substantial amounts to the average person's policy ."
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Motorists seeking to avoid big-hearted increases in their fees are always should be encouraged to shop around, with many astonished was discovered that buying comprehensive clothe is now often cheaper than third-party flaming and crime programmes .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for operators who install the device, of which about 3m are believed to be in use in UK cars. The cameras are particularly useful for motorists hoping to keep their no-claims bonus after road traffic accidents where they can use video evidence to present "theyre not" at fault .
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