The average cost of car insurance will affect a record high-pitched as a higher pace of duty on fees comes into effect, propagandizing up expenditures even further .
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%, computing about PS15 to the typical programme. IPT has increased rapidly in recent years, with motorists compensating simply 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 the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average car insurance premium changes despite efforts to tackle the bagging cost of whiplash payouts. Comparethemarket.com said it calculated the average policy overhead based on" hundreds of thousands of repeats per month" with the average based on" the top five cheapest costs presented to a consumer, where "consumers interests" has sounded through to buy ".
The insurance industry has been left dazed bygovernment changes to the mode accolades are calculated for auto disintegrate gashes or botched medical procedures .
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 deteriorate the future quality of a payout.
But rivals said the change will add up to PS75 to gondola insurance premiums, as well as territory the NHS with an additional annual PS1bn legislation .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed time for automobile guarantee. The costs of an average policy 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 levy over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore contributed substantial amounts to the average person's program ."
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Motorists seeking to avoid big increases in their fees are always advised to patronize around, with many stunned to find that buying comprehensive plow is now generally cheaper than third-party shoot and steal programmes .
One recent innovation is dismiss for dashcams. Insurers such as Axa and Swiftcover furnish rejects of 10-12. 5% for operators who install the device, of which about 3m are believed to be in use in UK automobiles. The cameras are particularly useful for motorists hoping to keep their no-claims bonus after road traffic accidents where they can use video prove to depict they were not at fault .
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