The cost of car insurance has dipped by record levels, according to the latest figures.
The average quote for annual comprehensive car insurance has fallen to £594 – a 9.8% drop from the figure of £659 in July last year, AA Insurance said. This is the biggest decrease since the its index began in 1994.
The figure for third-party, fire and theft has also dipped in the past 12 months, going down 4.8% to £820.
Comparing July 2013 figures with those of April, the AA showed comprehensive insurance has fallen 3% and third-party insurance is down 2.2%.
Over the past 12 months, car insurance costs have fallen for all age groups, with those aged 23-29 enjoying the biggest decreases with their average costs dipping 12.8% to £739.
All age groups have seen 12-month falls of at least 5.4% except those aged 70 or above who have had to settle for a 3.9% fall in premiums. On average, those aged 60-69 have the cheapest annual insurance (£342) and those aged 17-22 have the most expensive (£1210).
AA Insurance director Simon Douglas said: "This will be welcome news for hard-pressed motorists facing sharp fuel price increases.
"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."
He added: "The news hundreds of rogue 'no-win no-fee' claims firms have been reined in is welcome and, in part, falling insurance premiums reflect that. I hope Britain's reputation as the whiplash claim capital of Europe will now be put behind us."
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