The increase in insurance premiums rates is slowing, according to the AA's British insurance premium index which was released this week.

The index, which has been running since 1994, gives a quarterly update on the movements of home insurance on 50 buildings and contents risks and 50 motor risks.

The latest report shows the average premium for comprehensive motor cover rose by £5.85 in the last quarter, an increase of 0.87 %. The annual rise is now 5.62% compared to a 9% annual rise at the beginning of the year.

There was also an annual increase of 3% in buildings insurance with a quarterly rise of 0.69% in the average premium. Contents insurance also rose by just over 3% in the year.

AA Insurance Services managing director Andrew Briscoe said: "In the past we saw annual rises of 10%-20%.

"But although average premiums are flat, customers can still save about one third by taking the time to shop around."