The average cost of vehicle policy will hit a record high-pitched as a higher pace of tax on payments comes into effect, pushing up premiums so far .
According to comparison website comparethemarket.com, the average policy 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%, lending about PS15 to the conventional policy. 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, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average vehicle insurance premium reaches despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy penalty based on" hundreds of thousands of repeats per month" with the average based on" the top five cheapest premiums presented to "consumers interests", where a consumer has sounded through to buy ".
The insurance industry has been left stupefied bygovernment changes to the practice awards are calculated for automobile slam harms or botched medical business .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation allotments for serious personal injuries, to ensure inflation does not gnaw the future appreciate of a payout.
But dissidents said the change will add up to PS75 to gondola insurance premiums, as well as shoring the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed instant for car assurance. The cost 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 charge over the past two years. Evenly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore included substantial amounts to the average person's program ."
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Motorists seeking to avoid big-hearted increases in their fees are always should be encouraged to patronize around, with numerous stunned was discovered that buying extensive window-dressing is now usually cheaper than third-party ardor and stealing policies .
One recent invention is discounts for dashcams. Insurers such as Axa and Swiftcover render rejects of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK gondolas. The cameras are particularly useful for operators hoping to keep their no-claims bonus after an accident where they can use video sign to prove they were not at fault .
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