Car insurance quotes for an annual comprehensive policy continued to drop over the final quarter of 2012.
This is according to the latest benchmark British Insurance Premium Index from the AA, which showed the Shoparound summary – an average of the cheapest five quotes from various insurers – fell by 2.9 per cent during the three months to December 31st to £789, which is the cheapest since October 2011.
Simon Douglas, director of AA Insurance, said although average premiums are falling, they mask “considerable extremes” for individuals groups of drivers.
“Headlines saying premiums have increased by 50 per cent for young women don’t paint a true picture of what is actually happening,” he added.
During the three-month period, the car insurance industry saw an upheaval with the introduction of new EU legislation, which made it illegal for firms to determine premiums based on gender.
Because of this, the AA said the average premium increase for young female drivers aged between 17 and 22 is 4.7 per cent, while men of the same age have seen a reduction in rates of 1.9 per cent.