Running a vehicle is more expensive than ever - but this tip can help bring costs down
Drivers could typically save up to £46 every year by making one simple change to how they do things. By paying for their annual car insurance premium in a single lump sum rather than as monthly payments, new research from Compare the Market suggests motorists could save money instantly.
Car insurance premiums have risen across the board in the past year, as the cost of paying annually for a car insurance policy has risen by an average of £279 year-on-year, while the premium for paying on a monthly basis has similarly increased by £277. Monthly car insurance payments are typically more expensive as drivers are paying for the benefit of having the cost broken down into more manageable chunks, as well as any additional fees incurred by the insurer who may have to carry out a credit check. Most insurers will require motorists to pay an initial deposit, which is usually 20% of the annual amount.
Julie Daniels, motor insurance expert at Compare the Market, comments: “There will be many motorists feeling the impact financially from the increasing cost of car insurance, amongst the rise in other household bills.
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