The rate of increase in motor insurance premiums dropped dramatically in 2001, the latest AA British Insurance Premium Index shows.
Last year, drivers with comprehensive insurance saw their premiums rise by an average of 9%, compared with 19% in 2000. Non-comprehensive insurance premiums rose 12.86%.
The AA said although the 9% rise was significant, it was still much lower than the "staggering" 19% rise of 2000, when the insurance industry was "pulling itself out of a loss".
For the fourth quarter of 2001, average comprehensive motor insurance costs increased by 1.83%, while non-comprehensive costs rose 1.5%.
AA Insurance Services managing director Andrew Briscoe said: "During 2002, we expect to see continued increases of between 8% and 10% for car insurance, with rates starting to flatten before the end of the year.
"The market is still seeing claims costs increase, and events in the US on 11 September last year may yet have an impact on the cost of general insurance."
The British Insurance Premium Index provides quarterly updates on movements in car insurance costs, based on 50 risks (34 comprehensive and 16 non-comprehensive).
It shows average car insurance premiums based on open market rates from 37 of the UK's leading insurers. Composites and direct writers are included.
