It is the first slip after two consecutive quarters of rising premium but experts warn that there will be increases again in future.
But prices are still on average 9% lower than a year ago.
UK aggregator Confused also reports growth.
Research reveals prices now lower than a year ago.
Research finds that premiums actually fell in final quarter of the year.
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Comprehensive car insurance prices have dropped 1.1%, the largest quarterly reduction seen in more than three years.
Admiral’s price comparison website made a pre-tax profit of £4.5m.
The Confused.com Index, in association with Willis Towers Watson, shows impact of Brexit, IPT and the Ogden rate on the rise and warns prices could hit "record" levels.
Confused.com figures show that the discount rate cut played a key part in the rise of premium costs.
Confused.com figures show the increase in the final quarter of 2016 was lower than in the same period in 2015.
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Research says higher repair costs and increase in Insurance Premium Tax are behind the rising premiums.
Owner Admiral reports rises in revenue, profit and UK car insurance customers for the first half of 2016.
Trend of flat or falling first quarter premiums continues for fifth year.
Profits up and motor COR improves to 81% but Confused.com sees profit fall.
Confused.com index in association with Towers Watson cites market reaction to increasing claims costs.
Revenue also falls by 12% to £38.9m at the comparison website for the first six months of 2015.
Confused.com and Towers Watson index says the trend remains steadily upwards.
Admiral Group has reported that its UK aggregator Confused.com saw a drop in pre-tax profit to £15.8m in 2014 (2013: £21.7m).
Confused.com's new Index reports that prices fell by 7.9% over the year, despite a 2% increase in the fourth quarter.
The quarterly rise in comprehensive car insurance premiums was the first time since June 2011.
Confused.com sees profits slip as revenue remains stable.
Research shows younger drivers gained most from premium reductions.