British motorists could save up to £65 by paying their annual car insurance premium up front, rather than spreading the cost. That’s according to price comparison site, which says those who can afford to pay in one go could save money in the long run.

Insurance premiums have generally been on the rise over the past year, with prices increasing no matter how drivers pay. says this is due to “an uplift in the value of second-hand cars and higher vehicle repair costs.”

However, according to the site’s analysis of insurance policies, there’s a huge discrepancy between prices for those who pay monthly and for those who pay up front. Paying for the whole year up front cost an average of £623 in December, while the average combined sum of 12 monthly payments stood at £688.

Laptop on table showing car insurance

In itself, the news isn’t especially remarkable, as says paying in monthly installments is “typically more expensive”. This is because drivers are paying more for the benefit of having more manageable monthly outgoings, and there may be fees incurred by the insurer, who may have to carry out a credit check. Most insurers will require an initial deposit, then add interest to the remaining 10 or 11 monthly payments.

However, the cost of paying monthly has increased much more rapidly than paying in one lump sum, with the average premium up £83 year-on-year for those who pay every month. For those who pay in one hit, the average has only risen by £71.

Amid the ongoing cost-of-living crisis, is advising those who can afford to pay their insurance up front to do so. The company says the savings could help to offset other rising costs, although it realises some drivers may not have the luxury of being able to pay their premiums in one go.

“As living costs continue to rise, many motorists are feeling financially squeezed,” said’s Julie Daniels. “Saving on your car insurance is always attractive, considering that the average cost of car insurance is more than £600. Although making smaller monthly payments might seem easier, if you’re in a financial position to be able to pay your car insurance policy annually, it could lead to savings of up to £65.

“If you are unable to pay your premium in one go, there are other options which could help save you money. Shopping around for the cheapest deal when your policy ends could save you hundreds of pounds. Switching to a telematics policy may also be a good option for some young motorists, whose premiums could be reduced if they demonstrate they are safe drivers.”

Motor or car insurance application with car key