The average cost of car assurance will affect a record high as a higher charge of tax on payments comes into effect, pushing up prices even further .
According to comparison website comparethemarket.com, the average program been able to 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%, contributing about PS15 to the ordinary programme. IPT has increased rapidly in recent years, with motorists compensating exactly 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 vehicle insurance premium happens despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average plan payment based on" hundreds of thousands of mentions per month" with the average based on" the top five cheapest premiums introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment modification of the path gives are calculated for car slam gashes or botched medical actions .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation gifts for serious personal injuries, to ensure inflation does not deteriorate the future value of a payout.
But adversaries said the change will add up to PS75 to car insurance premiums, as well as acre the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed instant for car guarantee. The costs of an average programme 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 recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore included substantial amounts to the average person's program ."
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Motorists seeking to avoid big-hearted increases in their premiums are always advised to browse around, with countless astounded was discovered that buying thorough put-on is now often cheaper than third-party barrage and steal policies .
One recent invention is rebates for dashcams. Insurers such as Axa and Swiftcover render discounts of 10-12. 5% for motorists who install the maneuver, 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 testify to see "theyre not" at fault .
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