Drivers can save up to £46 on car insurance by paying annually rather than monthly, according to Compare the Market research.

Drivers can save £46 on car insurance if they opt for a single lump-sum payment annually, instead of monthly instalments. Research by Compare the Market found that the average cost of paying car insurance monthly is £938, while paying upfront is £892. Motor insurance expert Julie Daniels states that this method could help drivers feeling the financial impact of increasing car insurance prices.