The median cost of car insurance will punch a record high-pitched as a higher rate of excise on premiums comes into effect, propagandizing up premiums so far .
According to comparison website comparethemarket.com, the average policy will 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%, lending about PS15 to the usual 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 old, said here Association of British Insurers, and is expected to raise PS5bn in 2016-17.
The steep rise in the average auto insurance premium originates despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average plan overhead based on" hundreds of thousands of quotes per month" with the average based on" the top five cheapest expenditures introduced to "consumers interests", where "consumers interests" has sounded through to buy ".
The insurance industry has been left stunned bygovernment changes to the direction gives are calculated for car hurtle injuries or botched medical functionings .
In February the lord chancellor, Liz Truss, announced a change to the Ogden discount rate, which is used to calculate compensation allotments for serious personal injuries, to ensure inflation does not weaken the future cost of a payout.
But opposings said the change will add up to PS75 to automobile insurance premiums, as well as mooring the NHS with an additional annual PS1bn money .
Simon McCulloch of comparethemarket.com told:" This is somewhat of a watershed moment for auto guarantee. The cost of an average programme has risen by around a third in two years .
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" One of its most important causes of these rises is the doubling of insurance premium levy over the past two years. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has also supplemented substantial amounts to the average person's program ."
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Motorists seeking to avoid large-scale increases in their payments are always advised to supermarket around, with countless caught to find that buying exhaustive clothe is now typically cheaper than third-party flaming and fraud programs .
One recent innovation is deductions for dashcams. Insurers such as Axa and Swiftcover give rejects 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 an accident where they can use video suggestion to demonstrate they were not at fault .
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