The median cost of car policy will thump a record high as a higher pace of duty on payments comes into effect, pushing up premiums so far .
According to comparison website comparethemarket.com, the average program 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%, supplementing about PS15 to the normal plan. IPT has increased rapidly in recent years, with motorists paying precisely 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 grows despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest prices presented to "consumers interests", where "consumers interests" has clicked through to buy ".
The insurance industry has been left stupefied bygovernment modification of the channel bestows are calculated for automobile clang hurts 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 accolades for serious personal injuries, to ensure inflation does not erode the future cost of a payout.
But resists said the change will add up to PS75 to car insurance premiums, as well as acre the NHS with an additional annual PS1bn statute .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed moment for automobile policy. The cost of an average policy has risen by 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. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore contributed substantial amounts to the average person's programme ."
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Motorists seeking to avoid large-scale increases in their fees are always should be encouraged to supermarket around, with many surprised to find that buying exhaustive extend is now usually less costly than third-party flaming and fraud programs .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover furnish dismisses of 10-12. 5% for drivers who install the manoeuvre, of which about 3m are believed to be in use in UK autoes. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after an accident where they can use video ground to register "theyre not" at fault .
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