Car insurance premiums have reached a plateau and are likely to fall in 2003. That's according to the latest Motor Market Analysis report.

The report, by management consultant Tillinghast-Towers Perrin, shows shows a rise in premiums of only 0.87% between August and November 2002.

The cheapest three quotes for comprehensive cover increased by 1.4%, but for non-comprehensive insurance, premiums actually fell by 2.3%.

Tillinghast senior consultant Richard Day said: "In the 12 months to March 2002, premiums increased by over 7%.

"Although our latest findings reveal a sharp drop in premium increases, there is still some considerable uncertainty within the market with regards to what should happen to premiums."

Out of a panel of 30 insurers, 11 increased their rates and ten reduced them last year.

Day added: "Some insurers are now keen to take advantage of the current profitable premium levels by trying to grab market share from the more traditional players."

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