Data from the Association of British Insurers shows that the average cost of motor insurance fell by £19 (3%) compared to Q1. They had also fallen by £40 (6%) in Q1. On an annualised basis the average premium for motor insurance in Q2 was £562, down from £622 in the same period last year. In contrast, repair costs continued to rise and in Q2 totalled £2.1bn, an increase of £100m on Q1.

The ABI said its members paid out a total of £3.1bn in car insurance claims during the second quarter of the year.

Mark Shepherd (pictured), head of general insurance policy at the ABI, said: “It’s encouraging to see motor premiums have fallen for a second consecutive quarter, offering some much-needed relief to drivers. But with the cost of cover still weighing on household finances, we must not lose momentum in tackling the persistent pressures driving up claims.

“That’s why we continue to urge the Government to support the industry by investing in training for the repair sector, improving road safety, and holding firm against any rise in insurance premium tax in the autumn Budget.”