The average cost of vehicle policy will reach a record high as a higher rate of duty on fees comes into effect, propagandizing up premiums even further .
According to comparison website comparethemarket.com, the average program been able to 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%, computing about PS15 to the ordinary policy. IPT has increased rapidly in recent years, with motorists paying 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 auto insurance premium succeeds despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average plan penalty based on" hundreds of paraphrases per month" with the average based on" the top five cheapest costs introduced to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left stupefied bygovernment changes to the action honors are calculated for gondola crash injuries 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 awards for serious personal injuries, to ensure inflation does not gnaw the future ethic of a payout.
But foes said the change will add up to PS75 to auto insurance premiums, as well as property the NHS with an additional annual PS1bn statute .
Simon McCulloch of comparethemarket.com alleged:" This is somewhat of a watershed moment for gondola guarantee. The cost of an average policy 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 taxation over the past two years. Evenly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has also computed 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 store around, with numerous startled to find that buying exhaustive covering is now frequently less costly than third-party flame and stealing programmes .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover offer rejects 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 motorists hoping to keep their no-claims bonus after road traffic accidents where they can use video exhibit to present "theyre not" at fault .
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