The increase will hike the average car insurance premium up from £781 to £797, based on Confused.com’s price index.
On Thursday June 1, the government’s tax on insurance premiums rises from 10% to 12%.
Ms Stretton forecasted that, as a result, average car insurance premiums are on course to hit £1,000 by the end of 2018.
To put the IPT rate rise into context, the average car insurance premium was £629 in October 2015, when IPT was just 6%.
That’s not all – car insurance premiums will continue to shoot up thanks to changes in the personal injury discount rate which came into force in March.
As it stated in Cheap car insurance – Most popular and affordable cars to insure REVEALED Sun, March 19, 2017 Cheap car insurance – Most popular and affordable cars to insure REVEALED Play slideshow GETTY 1 of 15 1.
Vauxhall Corsa – £2,065 average yearly costSpeaking to Express.co.uk, a spokesperson for comparethemarket.com said: “Car insurance fronting is deemed to be fraud.
“They might even face the possibility of being taken to court and prosecuted for car insurance fraud.
A car insurance measure used by some parents when insuring their child, to save money, carries serious consequences.
GETTY Car insurance fraud can be committed if a motorists ‘fronts’ their policyAccording to research by GoCompare.com, more than half of parents of young drivers have “fronted” or would consider “fronting” a car insurance policy, if its resulted in lower premiums.
Car insurance in Michigan: How no-fault insurance works
As it stated in What is no-fault car insurance?
Unlike many private health insurance plans, no-fault car insurance also pays for in-home nursing care — known as “attendant care” — to help a person with tasks such as dressing, showering and preparing meals.
People generally have up to a year from the date of the accident to file a no-fault insurance claim.
No-fault auto insurance will pay for all of a car crash victim’s necessary medical bills for as long as that person’s injury or disability persists, potentially for life.
How long do I have to file a no-fault insurance claim?