The median costs of vehicle policy will touch a record high as a higher charge of duty on premiums comes into effect, pushing 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 policy. IPT has increased rapidly in recent years, with motorists compensating 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 here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average vehicle insurance premium find despite efforts to tackle the bagging costs of whiplash payouts. Comparethemarket.com said it calculated the average policy payment based on" hundreds of repeats per month" with the average based on" the top five cheapest rates presented to "consumers interests", where a consumer has clicked through to buy ".
The insurance industry has been left stupefied bygovernment changes to the road apportions are calculated for automobile crash hurts or botched medical enterprises .
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 erode the future ethic of a payout.
But opponents said the change will add up to PS75 to car insurance premiums, as well as acre the NHS with an additional annual PS1bn invoice .
Simon McCulloch of comparethemarket.com read:" This is somewhat of a watershed instant for car guarantee. 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 charge over the past two years. Evenly, the most 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 big increases in their premiums are always advised to store around, with countless amazed was discovered that buying exhaustive put-on is now usually cheaper than third-party burn and stealing programmes .
One recent innovation is dismiss for dashcams. Insurers such as Axa and Swiftcover furnish discounts of 10-12. 5% for drivers who install the manoeuvre, of which about 3m are believed to be in use in UK gondolas. The cameras are particularly useful for moves hoping to keep their no-claims bonus after road traffic accidents where they can use video ground to present they were not at fault .
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