British motorists could slash their car insurance costs by an average of £239 by making small changes regarding how they pay for their policy.
According to new research, motorists who choose to pay annually instead of monthly could save hundreds of pounds.
The data reveals that the typical annual car insurance policy costs just £418 when paid upfront for a year.
However, drivers who opt for monthly instalments face bills totalling £657 over the year - a staggering 57 per cent increase.
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Drivers could save hundreds of pounds when renewing their car insurance
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The substantial difference highlights how spreading payments can significantly inflate the overall cost of cover.
Monthly payment plans typically incorporate additional interest charges and administrative fees that push up the total amount paid.
Tom Banks, Go.Compare's car insurance spokesperson, addressed the findings: "It may surprise many drivers that there is such a large difference in the cost of car insurance, depending on whether you choose to pay monthly or annually.
"Our latest data shows you can make huge savings if you're able to pay up-front for your car insurance.
Drivers are also advised to shop around for their car insurance policy
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"Choosing to pay monthly often involves added interest or admin fees, so paying annually can really help to keep the costs down."
Banks acknowledged the appeal of monthly payments while highlighting the potential savings.
He noted: "It may be tempting to opt for a monthly payment as this can make it easier to manage your finances, but with an average saving of £239 for an annual policy, it's certainly worth considering paying annually if you have the budget to do so."
Beyond the annual payment option, Banks outlined several strategies for reducing insurance costs and potentially saving hundreds of pounds a year.
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Timing proves crucial, with Go.Compare's data showing that buying cover 26 days before renewal can deliver average savings of 30 per cent.
Banks added: "Using a comparison site like Go.Compare makes it quick and simple to get quotes from multiple insurers in one place.
"You only have to input your details once and you can see exactly what each policy includes, all in one place."
Accurately estimating annual mileage can further reduce premiums, with the fewer miles someone drives, the less their insurance will cost.
Britons can add security measures to protect their vehicles and lower their insurance costs PEXELSDespite the potential savings, drivers should always provide a realistic estimate, as an inaccurate mileage could invalidate their policies.
Additional cost-cutting measures include maintaining a clean claims history. Banks noted: "This will help to get a cheaper policy because insurers reward motorists who are claim-free with discounts on their premiums."
Vehicle security enhancements can also yield savings. The expert said adding features like wheel locks and insurer-approved alarms could lower insurance premiums.
With the average UK driver potentially saving hundreds of pounds through these simple adjustments, the findings offer welcome relief amid broader cost-of-living pressures affecting household budgets.
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