The median cost of gondola policy will stumble a record high-pitched as a higher rate of duty on fees comes into effect, pushing up costs so far .
According to comparison website comparethemarket.com, the average plan 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%, supplementing about PS15 to the typical policy. IPT has increased rapidly in recent years, with motorists paying precisely 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 gondola insurance premium reaches despite efforts to tackle the ballooning costs of whiplash payouts. Comparethemarket.com said it calculated the average policy penalty based on" hundreds of mentions per month" with the average based on" the top five cheapest costs introduced to a consumer, where a consumer has clicked through to buy ".
The insurance industry has been left dazed bygovernment changes to the space gifts are calculated for gondola slam 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 allotments for serious personal injuries, to ensure inflation does not deteriorate the future importance of a payout.
But rivals said the change will add up to PS75 to car insurance premiums, as well as mooring the NHS with an additional annual PS1bn greenback .
Simon McCulloch of comparethemarket.com enunciated:" This is somewhat of a watershed minute for vehicle insurance. The costs 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 excise over the past two years. Similarly, the recent decision by the Ministry of Justice to change how compensation is calculated, has furthermore lent substantial amounts to the average person's program ."
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Motorists seeking to avoid big-hearted increases in their fees are always advised to shop around, with many caught to find that buying thorough encompas is now generally cheaper than third-party flaming and stealing programmes .
One recent invention is dismiss for dashcams. Insurers such as Axa and Swiftcover render rejects of 10-12. 5% for motorists who install the device, of which about 3m are believed to be in use in UK vehicles. The cameras are particularly relevant for motorists hoping to keep their no-claims bonus after an accident where they can use video suggestion to picture "theyre not" at fault .
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