The average quote for annual comprehensive car insurance policy fell by 9.8% year-on-year to £594.86 in July, according to the AA.
AA’s British Insurance Premium Index has shown a sixth quarterly drop in premiums, which Simon Douglas, director of AA Insurance, attributed to increased competition and improved fraud detection by the insurance industry, reducing the number of spurious new whiplash injury claims.
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Douglas said: "Insurers were facing a fast-widening gap between premium income and claims costs, largely driven by whiplash injury claims and fraud which saw very sharp premium increases between 2009 and 2011."
The AA recently launched an online car retail service, but announced it will not promote any particular retail car finance, including the AA’s personal loan products.
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By GlobalData
