Average car insurance could soar to £1,000 next year: Tax rises and reform on pay-outs to raise YOUR premiums

‘Car insurance bills could soar above £1,000 next year due to stealth taxes and controversial compensation reforms, according to a report.
The cost of the average annual motor insurance policy is already £110 higher today than it was a year ago, rising 16 per cent to £781.
This has been driven by a flood of bogus whiplash claims, rising repair costs and successive tax increases.
But experts have warned a combination of further increases in Insurance Premium Tax and reforms to injury pay-outs will cause premiums to spiral.
Average premiums for comprehensive cover are on course to smash the 2011 record of £858 later this year, and could break the £1,000 barrier next year, according to analysis by Confused.com.’
Read more: Average car insurance could soar to £1,000 next year: Tax rises and reform on pay-outs to raise YOUR premiums