The average cost of car policy will smack a record high as a higher rate of tax on fees comes into effect, propagandizing up rates so far .
According to comparison website comparethemarket.com, the average policy 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 ordinary plan. IPT has increased rapidly in recent years, with motorists _empty_ 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 automobile insurance premium rises despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average programme penalty based on" hundreds of paraphrases per month" with the average based on" the top five cheapest prices presented to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment modification of the highway gives are calculated for car accident gashes 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 quality of a payout.
But resists said the change will add up to PS75 to auto insurance premiums, as well as shoring the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com remarked:" This is somewhat of a watershed time for vehicle insurance. The costs of an average policy has risen by 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 imposition over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also contributed substantial amounts to the average person's policy ."
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Motorists seeking to avoid large-scale increases in their premiums are always advised to shop around, with numerous amazed to find that buying thorough handle is now typically less costly than third-party flame and theft programs .
One recent invention is dismiss for dashcams. Insurers such as Axa and Swiftcover offer discounts of 10-12. 5% for motorists who install the design, of which about 3m are believed to be in use in UK automobiles. The cameras are particularly useful for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video exhibit to see "theyre not" at fault .
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