Prices were pushed down because of expected changes in the rate used to calculate compensation for personal injuries, reforms likely to reduce claims for whiplash injuries, as well as a reduction in the volume of claims, the survey said.

The average premium for a comprehensive policy is now 752 pounds according to the latest index from price comparison site Confused.com, compiled by insurance advisory company Willis Towers Watson.

The index, based on price figures compiled using anonymous data from all enquiries submitted on Admiral Group Confused.com, found that prices had fallen for the fourth quarter in a row, since they peaked last summer at 847 pounds.

Companies such as Admiral, RSA Insurance, Direct Line, esure and Hastings provide motor insurance in Britain's highly competitive insurance sector.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Keith Weir)