Are paying your Car Insurance instalments on a monthly basis? It might not be good for you.
The average driver shells out an extra £73 a year by spreading the cost, rather than making a one-off payment.
This drives up the average price of cover from £549 a year to £622, said MoneySupermarket.com.
Almost half pay monthly and the number is rising, even though insurers charge interest as if this was a loan.
MoneySupermarket's consumer affairs expert Kevin Pratt said: "Paying for your car cover in one lump sum is a big ask so it is no wonder millions opt to pay monthly."
Pratt said if you cannot find the money up front then you could pay for your premium on a credit card that charges zero interest for an introductory period.
"Aim to pay off the balance within 12 months so the slate is clean for next year's premium," he added.
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