The average costs of vehicle policy will affect a record high as a higher charge of taxation on fees comes into effect, pushing up tolls so far .
According to comparison website comparethemarket.com, the average programme will 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%, computing about PS15 to the typical program. IPT has increased rapidly in recent years, with motorists compensating only 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 auto insurance premium develops despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average programme overhead based on" hundreds of thousands of paraphrases per month" with the average based on" the top five cheapest prices presented to "consumers interests", where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment modification of the mode honors are calculated for gondola gate-crash harms or botched medical functionings .
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 erode the future quality of a payout.
But rivals said the change will add up to PS75 to auto insurance premiums, as well as shoring the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com read:" This is somewhat of a watershed time for car insurance. The costs 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 duty over the past two years. Equally, 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 policy ."
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Motorists seeking to avoid big-hearted increases in their fees are always advised to supermarket around, with many startled was discovered that buying exhaustive cover-up is now typically cheaper than third-party flame and fraud programmes .
One recent innovation is dismiss for dashcams. Insurers such as Axa and Swiftcover furnish discounts of 10-12. 5% for drivers who install the manoeuvre, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for drivers hoping to keep their no-claims bonus after road traffic accidents where they can use video exhibit to establish they were not at fault .
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