Motor insurance premiums have risen by 5.63% on average in the last year - a drop from the 19% and 9% increases seen in 2000 and 2001.
These figures were released by AA Insurance Services in its British Insurance Premium Index, out today.
Managing director Andrew Briscoe said: "This will come as welcome news to motorists who have faced high average annual premium increases in the last two years.
"Before events of 11 September last year, we were forecasting a turn in the market as insurers returned to profitability. Fears that increased reinsurance costs would be passed on to the general market have now largely been allayed," he added.
