ENSURE you're getting a good insurance deal, as premiums are set to increase Next time you take out an insurance policy, be warned, you might see your costs have been hiked.

A tax that affects the charges that make up more than 50 million policies has just been increased.

The standard rate of insurance premium tax (IPT), which applies to most general insurance policies bought in the UK, was increased from 9.5% to 10% on October 1 - a move that was announced in the Budget earlier this year.

General insurance covers a wide range of policies - and you could be affected by the tax increase if you're a motorist, a pet owner, or you have private medical insurance, for example.

It's not the first time the tax has been increased - in fact it's the second rise in less than a year.

IPT went up from 6% to 9.5% on November 1, 2015. IPT was first introduced to the UK in 1994, when a single flat rate of 2.5% was charged - and since then the rate has been increased five times. A 0.5 point increase may not sound particularly significant, but in fact, it can make a big difference, according to Kevin Pratt, a consumer affairs expert at website MoneySuperMarket.

Pratt says: "While a 0.5 percentage point rise from 9.5 to 10% doesn't sound like much, the wider story is actually a £4 rise compared to this time last year, when IPT was just 6%. "So instead of paying £6 tax on every £100 of premium in September 2015, customers are now looking at £10 per £100 from here on in."

Pratt says those who are part-way through their policy will not see the payments for their current policy change. But, he adds: "On renewal, your policy will rise to reflect the new 10% IPT." The UK Government has said the latest IPT increase will help fund new flood defences and maintain existing ones.

So what could these increases mean for you? According to calculations from the Association of British Insurers (ABI), the impact of the two most recent tax increases could add:

:: More than £16 to the average comprehensive motor insurance policy

:: More than £12.50 to the average combined building and contents policy

:: More than £12 to the average pet insurance policy

:: And over £52.50 to the average private medical insurance policy. People who already pay large premiums, such as young drivers, could find their costs go up particularly steeply.

So what other factors affect insurance premiums? As well as IPT, premium prices are influenced by claims rates, competition in the market and the state of the wider economy. With motor insurance, high numbers of whiplash claims in recent years have been a major factor affecting premiums, according to insurers.

Insurance giant Aviva recently said 76% of the cost of an average motor premium it collected was spent on claims, with personal injury taking up the biggest chunk of claim costs. In 2015, 80% of the motor injury claims Aviva received included whiplash. According to the ABI's figures, in the second quarter of 2016, the average comprehensive motor insurance premium was £434, up 10% on the same period a year earlier.

:: What about the cost of travel insurance?

Travel insurance is subject to higher rate IPT, which has remained unchanged at 20%. Some types of insurance, such as life insurance, are exempt from IPT. :: Is there anything customers can do to offset the expected insurance increases?

Shopping around is an option - but you'll need to make sure your new policy still suits your needs. The cheapest deal isn't always the best if it doesn't cover what you need it to. Pratt says car insurance customers could save up to £247 by switching to a new provider, and home insurance customers could save as much as £66.

Drivers don't need to accept accelerating car insurance premiums, research from insurance market experts Consumer Intelligence shows. While switching to a cheaper deal elsewhere could be an option, seeing if your existing insurer will match prices you have been quoted can also pay off. Consumer Intelligence found one in five drivers who stayed with their insurer managed to keep premiums down by haggling.