The average cost of gondola policy will affect a record high-pitched as a higher rate of duty on premiums comes into effect, pushing up premiums so far .
According to comparison website comparethemarket.com, the average plan been able to 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%, adding about PS15 to the usual programme. IPT has increased rapidly in recent years, with motorists paying exactly 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 automobile insurance premium returns despite efforts to tackle the bagging costs of whiplash payouts. Comparethemarket.com said it calculated the average programme expenditure based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest premiums introduced to "consumers interests", where "consumers interests" has clicked through to buy ".
The insurance industry has been left stunned bygovernment modification of the highway honors are calculated for automobile gate-crash hurts or botched medical operations .
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 deteriorate the future importance of a payout.
But adversaries said the change will add up to PS75 to gondola insurance premiums, as well as territory the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com did:" This is somewhat of a watershed instant for automobile coverage. The cost of an average program 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 levy over the past two years. Evenly, the most recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore lent substantial amounts to the average person's program ."
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Motorists seeking to avoid large-scale increases in their fees are always should be encouraged to supermarket around, with countless astonished was discovered that buying thorough cover-up is now typically cheaper than third-party attack and theft policies .
One recent invention is dismiss for dashcams. Insurers such as Axa and Swiftcover give rejects of 10-12. 5% for drivers who install the device, of which about 3m are believed to be in use in UK cars. The cameras are particularly useful for motorists hoping to keep their no-claims bonus after an accident where they can use video indication to reveal they were not at fault .
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