The average motor insurance premium has fallen by almost £50 over the last two years, according to figures from the Association of British Insurers (ABI).

Its data showed the average price paid for comprehensive cover during 2014 was £360 – down from £374 in 2013, and £409 in 2012. However, during the final three months of last year the average crept up to £372, which the ABI said reflected that falling oil prices and other factors had increased car usage, in turn leading to more accidents and an increase in low-value insurance claims.

Changes to the way whiplash claims are dealt with could push down the cost of cover further.

The ABI said the introduction in April of independent body MedCo, charged by the government with overseeing the production of independent medical reports in whiplash claims, “should deter the cheats and ensure honest motorists continue to get competitively-priced motor insurance”.

Britain’s biggest insurer, Aviva, said more needed to be done to reduce the number and cost of whiplash claims, adding that treating short-term whiplash injuries with rehabilitation instead of cash payments would cut premiums by an extra £32.