The simple trick that could cut your car insurance premium by almost 20 per cent
This is why more than half of the UK's drivers are paying too much for their car insurance
A SIMPLE trick could help Britain's motorists save almost 20 per cent on their car insurance over the course of a year.
Research has shown that more than half of British drivers are swindling themselves out of cash by paying their car insurance in monthly instalments.
An investigation conducted by found that motorists could save as much as 19 per cent in interest charges simply by paying a one-off annual premium.
It showed that the majority of insurers would charge, on average, 10 per cent more when fees were paid in monthly instalments, but some fees could increase to as much as 19 per cent.
For drivers paying their insurance off in monthly instalments, finances work in the same way as if they were to take out a loan over a 12 month period, adding interest on to each payment and increasing the total of the final bill.
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According to Gocompare.com, 52 per cent of motorists opt to buy policies with split payments, adding approximately £50 to even the cheapest annual premium.
Using the example of a 42-year old in Banbury, Oxon, driving a 16-reg Ford Focus to find the cheapest quote possible, showed that on a £449 annual premium, motorists would pay an extra £49.58 in interest charges.
The most expensive premium, a total of £1,397 annually, saw the driver avoid £246 worth of interest charges if they paid in one lump-sum.
Insurance experts have recommended drivers consider other ways to finance their car premium that will allow them to pay a one-off annual fee, such as using a zero per cent purchase credit card.