The average price of a comprehensive car insurance policy has risen by 2.7% to £858 in the second quarter of 2011, the smallest quarterly increase for nearly two years, according to a Confused.com and Towers Watson price index.
The annual rate of increase has slowed to 25% from a peak of nearly 38% at the end of 2010, the index shows.
Towers Watson director Duncan Anderson said: "With the price increases of 2010 starting to have an effect on 2011 performance, some companies seem to be easing off increases in what is still an intensely competitive market.
"Whether, given recent claims inflation, the market as a whole has moved rates up enough to move into profitability is, however, far from clear."
Anderson added that better use of geographical and vehicle data will become more important in premium rating after gender-based pricing is scrapped.
Confused.com head of motor Gareth Kloet said: "Consumers need successful insurers and a wide range of options if they are going to see improved value for money from their premiums."
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