Motor insurance costs continued to rise in 2001, although at a significantly slower rate, a new survey said today.

According to the AA, drivers with comprehensive insurance saw their premiums go up an average of 9% in 2001. While this is unwelcome news for drivers it represents a significant slowdown from the 2000 figures, which saw motor insurance shoot up by 19% over the year.

Non-comprehensive motor insurance rose more sharply by 13% last year, but again still showed slowdown from the previous year.

Comprehensive insurance covers damage to your car (whether it is your fault or not); personal injury costs; and any damage to a third party's vehicle or property. Non-comprehensive cover is usually taken out as third party, fire and theft, offering a cheaper alternative to comprehensive as it covers all eventualities apart from the cost of your vehicle.

"These changes show a real slowdown in the rate of increase seen previously, when the insurance industry was pulling itself out of loss," said Andrew Briscoe, managing director of AA insurance services.

"During 2002, we expect to see continued increases of between 8% and 10% for car insurance, with rates starting to flatten towards the end of the year."

According to the survey, the average comprehensive policy costs £670, but drivers could make savings of £233 on this price if they were to shop around for cover. The average non-comprehensive policy costs £787, which could be reduced a by a sizeable £308 by shopping around.

Meanwhile, buildings and contents insurance costs continue to creep up from the year before, according to the survey. Buildings rose by an average 4% to £137, while contents rose by 5% bringing the average premium to just over £110.