The comparison site analysed almost 11 million car insurance quotes and found that 44 per cent of British motorists overspend on their car insurance by paying monthly, at an average cost of £514 a year. Drivers who pay for their insurance with a one-off payment spend an average £452 – £62 less (11 per cent) annually.

“Spreading the cost of car insurance by paying monthly seems to make sense, but it could mean British motorists overspend in the long run,” said Kevin Pratt, insurance expert at MoneySuperMarket.

“Cash strapped motorists could consider other financially-savvy ways to spread the cost of their premium. Putting the cost of the premium on to a zero per cent purchase credit card, such as the Halifax Purchase Credit Card which offers 0 per cent on purchases for 21 months, allows drivers to spread the cost of their premium, effectively paying monthly without the additional interest.”

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