Recent research by uSwitch has revealed that car insurers are making up to £643 million per year from drivers who pay for their policies on a monthly basis.
Further figures reveal that 52 per cent of motorist prefers this method of payment but by doing so they are adding up to £50 to their premium as compared to an annual instalment.

The firm estimates that drivers are paying up to £500 more a year to insure their cars and fill up their tanks than they did in 2007.
Ashton Berkhauer, from uswitch.com, said: "As insurance costs, petrol prices and general living expenses are soaring, motorists should think twice before agreeing to monthly payments on their car insurance."

Mr Berkhauer recommends shopping around for the right deal and if annual payments are unsuitable consumers could consider insurance providers which do not increase premiums for monthly payments such as Virgin.