The AA has become the latest insurer to offer discounts to customers who agree to fit a tracking device that monitors their driving.

The Drivesafe scheme involves fitting a black box that can measure braking and acceleration, speed, cornering and the times at which the car is driven. Customers are quoted an initial annual premium, to be paid in instalments. If their driving meets and maintains the required standards, the payments will be lowered after 60 days. The cost of the equipment is built into the premiums.

The company says the scheme could mean discounts of up to 50 percent for drivers who are traditionally seen as in high-risk categories, such as young or inexperienced drivers. It also believes it will become more popular with young women once new rules banning price discrimination on gender grounds

The average cost of UK motor insurance rose by 4.9% for fully comp and 10.2% for third party last year. But the price changes varied significantly across the country.

Many Northern England areas saw average rises of more than 14%, with Bradford worst hit with a 17.1% hike. However drivers in Scotland, who already paid the lowest premiums, saw an overall decrease in rates. Falkirk had the biggest drop, with premiums down by 4.6%.

While some of the factors affecting motor premiums apply nationwide, such as a reluctance of companies to subsidise motor policy losses with profits from other areas of insurance, the regional variation appears to show the affects of personal injury claims.

The government has ditched the need for motor insurance certificates, a move that's billed as part of an effort to cut red tape for motorists.

The move will mean drivers no longer need to have either a paper or electronic certificate. The abolition of the requirement is partly because it is rarely if ever needed in practice as police can check insurance details using the Motor Insurance Database, which is updated continuously.

The AA noted that paper certificates were of little use anyway as people could set up an installment plan for their policy, get the certificate (which covered the entire year), then cancel the payments. There was also little protection against forged certificates.

Six motor insurers have agreed to limit the way they use an IT system that allowed them to share information about prices. The Office of Fair Trading took action over fears the system allowed a price cartel.

The system involved credit agency Experian running an "information exchange" using software from SSP limited. The six insurers using the system were Ageas, Aviva, AXA, Liverpool Victoria, RBS and Zurich.

Each of the firms was able to check prices being charged by competitors. The OFT said this created the risk that companies could effectively agree to keep prices at a certain level by not undercutting one another. It warned that such behavior would breach the Competition Act.

The average cost of a comprehensive motor insurance policy has dropped slightly over the past three months. But the long-term pattern is still steep rises, with the extra cost paid by young drivers rocketing.

Research for the Confused.com/Towers Watson Car Insurance Price Index
showed that between July and September, average comprehensive costs dropped by 1.6%. However, across the past year, prices are up by £92 to £843, a 12.3% rise. Insurers insist they aren't making huge profits and that the price rises are driven by the growing costs of settling personal injury claims.

Counter-intuitively third-party, fire and theft policies average significantly more at £1,155. That's likely to be because many people taking out such policies are classed as high risk and would pay even more if they had comprehensive policies.