The average cost of gondola insurance will smack a record high as a higher frequency of duty on payments comes into effect, pushing up costs even further .
According to comparison website comparethemarket.com, the average policy 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%, adding about PS15 to the usual program. 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 old, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average vehicle insurance premium originates despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average programme overhead based on" hundreds of excerpts per month" with the average based on" the top five cheapest tolls introduced to "consumers interests", where "consumers interests" has sounded through to buy ".
The insurance industry has been left stunned bygovernment modification of the path honors are calculated for car sound harms or botched medical runnings .
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 weaken the future significance of a payout.
But resists said the change will add up to PS75 to automobile insurance premiums, as well as mooring the NHS with an additional annual PS1bn proposal .
Simon McCulloch of comparethemarket.com responded:" This is somewhat of a watershed minute for gondola guarantee. 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 charge over the past two years. Similarly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also supplemented substantial amounts to the average person's programme ."
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Motorists seeking to avoid big increases in their premiums are always advised to supermarket around, with countless surprised was discovered that buying thorough cros is now generally cheaper than third-party ardour and fraud programmes .
One recent invention is dismiss for dashcams. Insurers such as Axa and Swiftcover give dismisses of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK cars. The cameras are particularly useful for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video evidence to demonstrate "theyre not" at fault .
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