The median cost of car policy will make a record high-pitched as a higher frequency of taxation on fees comes into effect, pushing up costs so far .
According to comparison website comparethemarket.com, the average plan been able to 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 plan. IPT has increased rapidly in recent years, with motorists compensating exactly 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 vehicle insurance premium reaches despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average program penalty based on" hundreds of paraphrases per month" with the average based on" the top five cheapest tolls introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment changes to the method accolades are calculated for gondola gate-crash gashes 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 gifts for serious personal injuries, to ensure inflation does not erode the future significance of a payout.
But opponents said the change will add up to PS75 to auto insurance premiums, as well as landing the NHS with an additional annual PS1bn invoice .
Simon McCulloch of comparethemarket.com suggested:" This is somewhat of a watershed moment for gondola assurance. The costs of an average policy 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 charge over the past two years. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore contributed substantial amounts to the average person's policy ."
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Motorists seeking to avoid big-hearted increases in their premiums are always advised to browse around, with countless amazed was discovered that buying exhaustive encompas is now usually less costly than third-party fire and steal programs .
One recent invention is deductions for dashcams. Insurers such as Axa and Swiftcover furnish discounts of 10-12. 5% for motorists who install the invention, of which about 3m are believed to be in use in UK cars. The cameras are particularly relevant for operators hoping to keep their no-claims bonus after an accident where they can use video testify to indicate "theyre not" at fault .
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