The average cost of vehicle insurance will reach a record high as a higher proportion of duty on fees comes into effect, pushing up expenditures so far .
According to comparison website comparethemarket.com, the average program 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%, lending about PS15 to the usual program. IPT has increased rapidly in recent years, with motorists _empty_ only 6% in 2015 before a series of hikes .
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The tax has generated about PS13bn over the past five years, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average gondola insurance premium grows despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average policy rate based on" hundreds of thousands of mentions per month" with the average based on" the top five cheapest expenditures introduced to "consumers interests", where a consumer has sounded through to buy ".
The insurance industry has been left dazed bygovernment modification of the lane gifts are calculated for automobile crash gashes or botched medical activities .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation honors for serious personal injuries, to ensure inflation does not deteriorate the future ethic of a payout.
But antagonists said the change will add up to PS75 to auto insurance premiums, as well as property the NHS with an additional annual PS1bn bill .
Simon McCulloch of comparethemarket.com said:" This is somewhat of a watershed instant for automobile insurance. The cost 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 duty over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has also lent substantial amounts to the average person's program ."
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Motorists seeking to avoid large-hearted increases in their payments are always advised to browse around, with numerous astounded to find that buying thorough cros is now typically less costly than third-party ardour and stealing plans .
One recent innovation is discounts for dashcams. Insurers such as Axa and Swiftcover furnish discounts of 10-12. 5% for moves who install the design, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly useful for drivers hoping to keep their no-claims bonus after road traffic accidents where they can use video attest to demonstrate they were not at fault .
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