Drivers are being alerted to a top tip that could save them up to £46 on their annual car insurance bill.

Rather than paying their premium in monthly instalments, paying it off in one annual bulk payment could save UK motorists £46 a year, research has revealed.

The cost of paying monthly for an annual car insurance policy is £938 on average, as of February 2024 - £46 more expensive than a single lump sum annual payment (£892).

The research, from Compare the Market, comes as car insurance premiums continued to rise over the last 12 months.

The rise in the cost of car insurance in the past 12 months may in part be due to a rise in the cost of claims for insurers.

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.

Julie Daniels, motor insurance expert at Compare the Market, explained: “There will be many motorists feeling the impact financially from the increasing cost of car insurance, amongst the rise in other household bills.

“With the cost of car insurance now around £900 on average, some motorists may be considering paying smaller amounts on a monthly basis, rather than one lump-sum payment. 

“Although monthly payments might seem easier and may be the only viable option for some households, if you’re in a financial position to be able to pay your car insurance policy annually, this could typically lower your premium by up to £46.

“If you are unable to pay your premium in one go, there are other options which could help save you money.

“Shopping around ahead of renewal is one of the best ways to see what deals are available. Switching to a telematics policy may also be a good option for some young motorists, whose premium could be reduced if they demonstrate they are a safe driver.”