The fall in car insurance premiums has bottomed out, according to one leading insurer.

Admiral says that its half-year results statement suggests the falling prices of recent years are levelling out. The company’s chief executive commented: "In the UK there are some signs that premiums are no longer falling but we have yet to see firm evidence of an inflection point and a return to premium growth.

"Admiral's premium rates have been pretty flat over the first half of the year, though as a result of the reductions in 2013, total premiums are down around nine per cent compared with the first half of 2013."

The fall in insurance premiums over the past three years have come as a result of government and industry efforts to clamp down on fraud, particularly whiplash claims. Last year the AA noted a 16.6 per cent fall in the average cost of comprehensive car insurance cover,

Admiral reported a UK car insurance profit before tax of £207.7 million – this is a rise of eight per cent on the same period last year – but the company said it expects its UK business to remain unchanged for 2014 as a whole. Nevertheless, the early signs are that the premium rate will not continue to fall, with the curve now levelling out and prices likely to stagnate if not rise slightly over the coming 12 months.

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