The average cost of auto assurance will affect a record high as a higher rate of tax on fees comes into effect, pushing up prices even further .
According to comparison website comparethemarket.com, the average programme 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%, including about PS15 to the ordinary policy. IPT has increased rapidly in recent years, with motorists paying time 6% in 2015 before a series of hikes .
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The tax has generated about PS13bn over the past five years, said here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average car insurance premium reaches despite efforts to tackle the bagging cost of whiplash payouts. Comparethemarket.com said it calculated the average programme overhead based on" hundreds of thousands of quotes per month" with the average based on" the top five cheapest expenditures presented to "consumers interests", where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment changes to the style gifts are calculated for gondola accident injuries 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 gifts for serious personal injuries, to ensure inflation does not deteriorate the future value of a payout.
But rivals said the change will add up to PS75 to gondola insurance premiums, as well as acre the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed minute for gondola insurance. The cost of an average programme 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 imposition over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also added substantial amounts to the average person's program ."
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Motorists seeking to avoid large-scale increases in their fees are always advised to shop around, with many astonished was discovered that buying exhaustive sheathe is now frequently cheaper than third-party barrage and theft plans .
One recent invention is rebates for dashcams. Insurers such as Axa and Swiftcover offer dismisses of 10-12. 5% for moves who install the design, of which about 3m are believed to be in use in UK autoes. The cameras are particularly useful for operators hoping to keep their no-claims bonus after an accident where they can use video attest to reveal "theyre not" at fault .
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