Car insurance premiums are still falling, but it is still unclear when the market will level out, new research has suggested.

According to insurance provider Esure, car insurance prices fell by 7.4 per cent over the past three months. The result for the company behind Sheila’s Wheels and comparison website Go Compare was that its shares fell by as much as six per cent in the immediate aftermath of its announcement.

The latest figures released by the company show that Esure had 1.954 million insurance policies in force at the end of September, up 2.5 per cent on the same stage last year, but in the quarter premiums fell 7.4 per cent to £149.6 million. Meanwhile, car premiums fell 8.8 per cent.

It is further evidence of the continuing slide in car insurance prices, one that the industry has been saying will soon level out as they hit rock bottom.

However, Esure’s chief executive Stuart Vann said: “We have seen some signs of rate stabilisation in the UK motor market but it is too early to say if this represents a turn in the motor rating cycle or is a consequence of rating seasonality.”

As the insurers remain patient, the investors have clearly grown tired of the decreasing profits being posted by Esure and its competitors, choosing to sell up and move on.

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