Motorists could save themselves money by paying for car insurance once a year, rather than on a monthly basis.
This is according to new research from MoneySupermarket.com, which found almost half (48 per cent) of drivers surveyed pay for insurance every four weeks and this costs them on average £621 a year.
Meanwhile, respondents who pay their bill yearly are typically spending £532 every 12 months, meaning people could collectively save £1.6 billion by switching to annual payments.
Peter Harrison, car insurance expert at the price comparison website, said running a car is not cheap and while premiums have dropped in recent times, this is counterbalanced by rising fuel costs.
He explained that even though paying an upfront annual premium for car insurance “can be a huge strain on a family’s finances”, monthly payments “could end up costing you more in the long run”.
The Office for National Statistics has announced household budgets are being squeezed by a 5.8 per cent rise in car insurance premiums caused by increasing whiplash claims and the EU ban on gender-based premiums.