The median cost of automobile policy will stumble a record high as a higher pace of levy on payments comes into effect, pushing up rates so far .
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%, computing about PS15 to the conventional programme. IPT has increased rapidly in recent years, with motorists paying only 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 auto insurance premium rises despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy rate based on" hundreds of excerpts per month" with the average based on" the top five cheapest costs introduced to a consumer, where "consumers interests" has clicked through to buy ".
The insurance industry has been left stunned bygovernment modification of the style honors are calculated for car hurtle harms 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 apportions for serious personal injuries, to ensure inflation does not weaken the future price of a payout.
But opposings said the change will add up to PS75 to auto insurance premiums, as well as landing the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com announced:" This is somewhat of a watershed minute for gondola 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. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also added substantial amounts to the average person's program ."
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Motorists seeking to avoid big-hearted increases in their payments are always advised to supermarket around, with many amazed was discovered that buying comprehensive envelop is now usually cheaper than third-party burn and crime programmes .
One recent invention is discounts for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for motorists who install the machine, of which about 3m are believed to be in use in UK gondolas. The cameras are particularly useful for operators hoping to keep their no-claims bonus after an accident where they can use video indication to demonstrate they were not at fault .
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