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Record fall in motor insurance premiums

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AA Index sees prices fall but company predicts decreases will end in 2014.

The latest benchmark AA British Insurance Premium Index has shown further record falls in the cost of comprehensive car insurance.

Over the last three months of 2013, the AA's Shoparound quote - an average of the five cheapest premiums for both price comparison sites and the direct and broker market - fell by a further 4.6%.

The net effect was a 14.1% fall over the year. The AA confirmed this is the biggest annual fall ever recorded by the Index.

The average quoted Shoparound premium for an

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