The average cost of gondola policy will thump a record high as a higher proportion of tax on payments comes into effect, pushing up prices so far .
According to comparison website comparethemarket.com, the average programme 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%, including about PS15 to the usual policy. 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, said the Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average auto insurance premium goes despite efforts to tackle the ballooning cost of whiplash payouts. Comparethemarket.com said it calculated the average program cost based on" hundreds of repeats per month" with the average based on" the top five cheapest tolls presented to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment changes to the acces awardings are calculated for car slam hurts or botched medical business .
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 gnaw the future value of a payout.
But opponents said the change will add up to PS75 to vehicle insurance premiums, as well as acre the NHS with an additional annual PS1bn statute .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed instant for car insurance. The costs of an average programme 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 tax over the past two years. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has also lent substantial amounts to the average person's plan ."
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Motorists seeking to avoid large-hearted increases in their premiums are always should be encouraged to browse around, with countless surprised was discovered that buying thorough mask is now generally less costly than third-party ardour and stealing policies .
One recent innovation is dismiss for dashcams. Insurers such as Axa and Swiftcover furnish rejects of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK gondolas. The cameras are particularly useful for operators hoping to keep their no-claims bonus after road traffic accidents where they can use video testify to show "theyre not" at fault .
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