The average cost of car policy will reach a record high-pitched as a higher proportion of imposition on payments comes into effect, pushing up premiums 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%, lending about PS15 to the conventional plan. 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 vehicle insurance premium extends despite efforts to tackle the bagging cost of whiplash payouts. Comparethemarket.com said it calculated the average policy expense based on" hundreds of thousands of repeats per month" with the average based on" the top five cheapest rates introduced to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the road bestows are calculated for auto disintegrate injuries or botched medical business .
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 diminish the future price of a payout.
But opponents said the change will add up to PS75 to vehicle insurance premiums, as well as territory the NHS with an additional annual PS1bn money .
Simon McCulloch of comparethemarket.com supposed:" This is somewhat of a watershed moment for gondola guarantee. The costs of an average policy have increased in 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 duty over the past two years. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore included substantial amounts to the average person's plan ."
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Motorists seeking to avoid large-scale increases in their premiums are always advised to store around, with many stunned was discovered that buying extensive handle is now usually cheaper than third-party ardor and stealing programmes .
One recent invention is rejects for dashcams. Insurers such as Axa and Swiftcover volunteer rejects of 10-12. 5% for drivers who install the maneuver, of which about 3m are believed to be in use in UK autoes. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video manifestation to substantiate they were not at fault .
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