Car insurance premiums have fallen sharply, with the average price falling by over £100 over the first three months of the year, new figures have revealed.
According to the AA, the average price of a comprehensive motor insurance policy was £531 at the start of 2014, highlighting a 5.6 per cent fall in the last three months of 2013 and a 16.6 per cent drop on the figure for the same period last year.
Young drivers saw the biggest reductions in premiums, with an average drop of 10 per cent for the 17-22 age category. New drivers now pay £1,158 on average for their policies.
The age bracket which pays the cheapest comprehensive insurance is the 60-69 group, with the average policy costing just £299.81.
The report also revealed a regional variation in insurance prices, with drivers in Scotland paying jut £382.55 on average. By contrast, drivers in the North West pay the most, forking out £779.97 annually.
But the AA claims that the drop in prices could be the end of the good news for drivers. AA Insurance director Simon Douglas said: "Legal reforms introduced by the Justice Ministry to curb organised attempts at whiplash injury fraud coupled with better fraud detection by insurers have also certainly helped put downward pressure on premiums.
"But despite this there is no evidence that this is delivering any significant reduction in the number and value of personal injury claims.
"I do expect premiums to start rising again this year unless the fraud issue can be dealt with."
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