An extra £182 per year is being paid out by car insurance customers who make automated monthly payments, it has been revealed, in news that may be of interest to motorists looking to reduce their expenditure on car insurance cover .
According to financing website MoneyExpert, 92 per cent of all car insurance deals demand an additional fee for direct debit payments – this typically stands at 22.7 per cent.
Consequently, a comprehensive car insurance policyholder who shells out £806 per year on protection must pay an additional sum of £182 for a direct debit transaction.
“Motorists can still get good deals by shopping around,” commented Sean Gardner, chief executive of the financing website.
“But when you look around, make sure that your savings are not going to be swallowed up by the extra cost of paying by direct debit.”
Last month, financing website moneysupermarket.com revealed that the average male car insurance premium was £943.70 in 2006.
By way of comparison, women drivers typically shelled out £646.12 on their car insurance cover, since females are generally perceived as lower-risk propositions by car insurance companies .
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