The average cost of car assurance will make a record high as a higher charge of duty on fees comes into effect, pushing up premiums so far .
According to comparison website comparethemarket.com, the average program 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%, supplementing about PS15 to the conventional plan. IPT has increased rapidly in recent years, with motorists paying simply 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 automobile insurance premium changes despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average program overhead based on" hundreds of paraphrases per month" with the average based on" the top five cheapest prices presented to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment changes to the course awards are calculated for car sound injuries or botched medical actions .
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 diminish the future evaluate of a payout.
But rivals said the change will add up to PS75 to auto insurance premiums, as well as mooring the NHS with an additional annual PS1bn invoice .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed moment for automobile guarantee. The costs of an average plan 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. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore computed substantial amounts to the average person's plan ."
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Motorists seeking to avoid big-hearted increases in their fees are always advised to store around, with countless surprised was discovered that buying comprehensive handle is now often cheaper than third-party ardour and steal programmes .
One recent invention is deductions for dashcams. Insurers such as Axa and Swiftcover offer rejects of 10-12. 5% for operators who install the invention, 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 road traffic accidents where they can use video sign to show they were not at fault .
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