New research has progressed that insurance premiums are on the decline. This has come as fantastic news for many, with the majority of us seeing car insurance as one of our steepest outgoings. In 2013 there was a 14.1 per cent drop in insurance, meaning that in the last two years more than £100 has been deducted from premiums. A joint initiative plan is also being put in place between insurers and the DVLA. Their mission is to get drivers’ licence numbers, allowing insurers to locate each drivers full history including the date they passed their test as well as convictions and points. This plan will literally reinvent the insurance set-up process, removing the chance of errors. Cutting out mistakes and streamlining the application process will result in an average £15 reduction from each and every policy. However, not everyone seems to share this optimism about the insurance market. Simon Douglas, director of AA Insurance, said: "I fear that the downward spiral will end with a bump. I expect the fall to continue at a slower rate over the first quarter of this year, but I think premiums will then level off. "My biggest fear is that the falls are too great, premiums will bounce sharply up again later in the year which would not be good for the reputation of the industry."