The average cost of car policy will stumble a record high as a higher rate of levy on premiums comes into effect, pushing up costs even further .
According to comparison website comparethemarket.com, the average program 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%, lending about PS15 to the normal policy. 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 here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average automobile insurance premium goes despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average program penalty based on" hundreds of paraphrases per month" with the average based on" the top five cheapest rates presented to a consumer, where a consumer has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the highway honors are calculated for auto gate-crash traumata 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 gnaw the future appreciate of a payout.
But resists said the change will add up to PS75 to vehicle insurance premiums, as well as mooring the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com added:" This is somewhat of a watershed minute for car assurance. The cost 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 imposition over the past two years. Evenly, 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 program ."
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Motorists seeking to avoid big-hearted increases in their fees are always advised to supermarket around, with many astonished was discovered that buying exhaustive move is now generally cheaper than third-party fire and crime programs .
One recent invention is deductions for dashcams. Insurers such as Axa and Swiftcover offer dismisses of 10-12. 5% for drivers who install the invention, of which about 3m are believed to be in use in UK autoes. The cameras are particularly useful for motorists hoping to keep their no-claims bonus after road traffic accidents where they can use video prove to display they were not at fault .
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