The average costs of gondola insurance will punch a record high as a higher charge of tax on fees comes into effect, pushing up expenditures even further .
According to comparison website comparethemarket.com, the average policy 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 ordinary policy. IPT has increased rapidly in recent years, with motorists _empty_ just 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 comes despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average programme rate based on" hundreds of quotes per month" with the average based on" the top five cheapest prices introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left stunned bygovernment changes to the behavior apportions are calculated for car crash harms or botched medical operations .
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 weaken the future appreciate of a payout.
But rivals said the change will add up to PS75 to automobile insurance premiums, as well as acre the NHS with an additional annual PS1bn money .
Simon McCulloch of comparethemarket.com replied:" This is somewhat of a watershed time for car coverage. The costs of an average program 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 charge over the past two years. Equally, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore added substantial amounts to the average person's policy ."
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Motorists seeking to avoid big increases in their fees are always should be encouraged to shop around, with countless stunned was discovered that buying comprehensive plow is now typically less costly than third-party fervor and crime policies .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover offer discounts of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK cars. The cameras are particularly useful for drivers hoping to keep their no-claims bonus after road traffic accidents where they can use video suggestion to appearance "theyre not" at fault .
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