The average cost of gondola guarantee will thump a record high-pitched as a higher proportion of levy on fees comes into effect, pushing up premiums so far .
According to comparison website comparethemarket.com, the average program 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%, adding about PS15 to the usual programme. IPT has increased rapidly in recent years, with motorists paying merely 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 automobile insurance premium succeeds despite efforts to tackle the bagging cost of whiplash payouts. Comparethemarket.com said it calculated the average policy expenditure based on" hundreds of thousands of paraphrases per month" with the average based on" the top five cheapest tolls presented to "consumers interests", where "consumers interests" has clicked through to buy ".
The insurance industry has been left stupefied bygovernment changes to the space honors are calculated for auto crash harms 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 awardings for serious personal injuries, to ensure inflation does not erode the future quality of a payout.
But foes said the change will add up to PS75 to car insurance premiums, as well as territory the NHS with an additional annual PS1bn statement .
Simon McCulloch of comparethemarket.com announced:" This is somewhat of a watershed instant for vehicle guarantee. The costs of an average program 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 tariff over the past two years. Evenly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore lent substantial amounts to the average person's plan ."
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Motorists seeking to avoid large-hearted increases in their payments are always advised to browse around, with many astounded to find that buying extensive treat is now generally less costly than third-party flame and crime plans .
One recent innovation is rebates for dashcams. Insurers such as Axa and Swiftcover offer dismisses of 10-12. 5% for drivers who install the machine, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for moves hoping to keep their no-claims bonus after road traffic accidents where they can use video exhibit to testify they were not at fault .
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