The median cost of car policy will reach a record high as a higher frequency of taxation on fees comes into effect, pushing up rates so far .
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%, supplementing about PS15 to the normal policy. IPT has increased rapidly in recent years, with motorists compensating 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 auto insurance premium changes despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of thousands of excerpts per month" with the average based on" the top five cheapest rates introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment changes to the lane awardings are calculated for auto crash injuries or botched medical runnings .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation accolades for serious personal injuries, to ensure inflation does not gnaw the future cost of a payout.
But antagonists said the change will add up to PS75 to automobile insurance premiums, as well as territory the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed moment for vehicle coverage. The cost of an average programme has risen by 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 imposition over the past two years. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore added substantial amounts to the average person's program ."
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Motorists seeking to avoid big increases in their payments are always should be encouraged to supermarket around, with countless surprised was discovered that buying thorough report is now generally cheaper than third-party volley and theft policies .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover give dismisses of 10-12. 5% for motorists who install the machine, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for drivers hoping to keep their no-claims bonus after an accident where they can use video ground to reveal "theyre not" at fault .
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