The median cost of car policy will make a record high-pitched as a higher rate of imposition on payments comes into effect, pushing up premiums even further .
According to comparison website comparethemarket.com, the average programme 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%, contributing about PS15 to the normal plan. IPT has increased rapidly in recent years, with motorists paying 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 comes despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average programme payment based on" hundreds of thousands of paraphrases per month" with the average based on" the top five cheapest premiums presented to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the style awardings are calculated for car slam gashes or botched medical enterprises .
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 diminish the future significance of a payout.
But foes said the change will add up to PS75 to car insurance premiums, as well as landing the NHS with an additional annual PS1bn proposal .
Simon McCulloch of comparethemarket.com responded:" This is somewhat of a watershed moment for automobile policy. The cost of an average plan have increased in around a third in two years .
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" One of the most prominent causes of these rises is the doubling of insurance premium taxation over the past two years. Equally, the 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 payments are always advised to patronize around, with numerous astonished to find that buying comprehensive comprise is now typically cheaper than third-party fire and crime programs .
One recent innovation is dismiss for dashcams. Insurers such as Axa and Swiftcover give discounts of 10-12. 5% for moves who install the maneuver, 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 road traffic accidents where they can use video indicate to demonstrate "theyre not" at fault .
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