Car insurance premiums are on their way down, says AA Insurance.
The firm's latest report shows the average fully-comprehensive car insurance policy fell 2.9 per cent to £844 in the period July to September 2012, compared with the previous three months.
Motorists who bought fully-comprehensive policies directly from insurance firms saw a 2.9 per cent decrease to an average of £870, while policies purchased via online comparison websites fell by one per cent to £612, on average.
During July to September 2012, young male drivers saw their premiums fall 0.7 per cent to £1,603 on average, while those for young women fell 2.2 per cent to £1,127.
All regions of the UK saw average car insurance premiums fall except Anglia, where they rose 1.4 per cent.
Greater Manchester and Liverpool are the most expensive areas to purchase car insurance with premiums averaging £1,059.
Meanwhile Scotland remains the cheapest, averaging £438.
AA Insurance director Simon Douglas said: "Competition is tough in the insurance market, forcing many companies to reduce premiums despite the fact that costs show little sign of abating.
Nevertheless, some are still increasing premiums.
"Motor insurance has been a focus of Government attention for some time and next year, new legal reforms are expected to reduce the cost of personal injury claims and fraud.
"Whiplash injury claims continue to pour in and under current legislation, they are difficult for insurers to reject, even if they think they may be fraudulent, because it is difficult to prove whether or not a claimant has suffered."
Have you experienced a fall in insurance prices? Let us know by posting your comments below