The average cost of automobile assurance will thump a record high-pitched as a higher frequency of duty on premiums 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%, including about PS15 to the conventional programme. IPT has increased rapidly in recent years, with motorists _empty_ really 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 car insurance premium calls despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of mentions per month" with the average based on" the top five cheapest prices introduced to a consumer, where a consumer has sounded through to buy ".
The insurance industry has been left stupefied bygovernment changes to the nature allotments are calculated for gondola clang gashes or botched medical activities .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation gives for serious personal injuries, to ensure inflation does not diminish the future appraise of a payout.
But foes said the change will add up to PS75 to vehicle insurance premiums, as well as shoring the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com answered:" This is somewhat of a watershed time for auto 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 levy over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also lent substantial amounts to the average person's plan ."
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Motorists seeking to avoid large-hearted increases in their payments are always advised to browse around, with many caught to find that buying thorough blanket is now generally less costly than third-party shoot and steal programmes .
One recent invention is rejects for dashcams. Insurers such as Axa and Swiftcover volunteer rejects of 10-12. 5% for moves who install the machine, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video suggestion to picture "theyre not" at fault .
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