Motor and home insurance premiums have risen at less than the rate of inflation during the last quarter, according to the AA's British Insurance Premium Index.
The average cost of comprehensive motor insurance increased by 0.7% to £699 during the last quarter. Non-comprehensive cover rose by 0.8%, with the average premium up £7 to £821 in the same period.
The AA reported increases in buildings and contents cover at below the rate of inflation. The average premium for buildings insurance rose by 0.8 during the last quarter.
Meanwhile contents cover has seen the smallest increase with the average premium rising by 0.8% in the last quarter.
AA Insurance Services managing director Andrew Briscoe said: "Seeing increases in insurance premiums so close to the rate of inflation is great news for customers. Current industry indications are that this slow down is set to continue and, while premiums are unlikely to fall, customers are now getting a very good deal on their insurance.
"However, customers should still shop around because, as our survey shows, they can save a lot by doing so. We also advise customers to look at what is included in their policies, as the level of cover can differ greatly between insurance companies."
