Driving a bargain: Car owners could save £239 by paying annually for insurance, new data shows
While paying monthly costs motorists 57% more on average
New data has revealed that UK motorists could save an average of £239 by paying for their car insurance policy annually rather than monthly.*
According to the insurance experts at Go.Compare, the average cost of a car insurance policy when paid annually is £418, compared to £657 when paid monthly - a 57% increase.
Tom Banks, Go.Compare car insurance spokesperson, commented on the findings: “It may surprise many drivers that there is such a large difference in the cost of car insurance, depending on whether you choose to pay monthly or annually.
“Our latest data shows you can make huge savings if you’re able to pay up-front for your car insurance. Choosing to pay monthly often involves added interest or admin fees, so paying annually can really help to keep the costs down.
“It may be tempting to opt for a monthly payment as this can make it easier to manage your finances, but with an average saving of £239 for an annual policy, it’s certainly worth considering paying annually if you have the budget to do so.
“When you are looking for car insurance, there are several ways to make sure you’re not paying more than you need to:
- Time when you buy: Purchasing a car insurance policy in advance of your renewal could help cut costs – our data shows that purchasing a policy 26 days before renewal can save you 30% on average.**
- Shop around: Using a comparison site like Go.Compare makes it quick and simple to get quotes from multiple insurers in one place. You only have to input your details once and you can see exactly what each policy includes, all in one place.
- Limit mileage: Generally, the fewer miles you drive, the less your insurance will cost. However, always provide a realistic estimate when getting a quote as giving inaccurate mileage could invalidate your policy.
- Build up your no claims bonus discount: This will help to get a cheaper policy because insurers reward motorists who are claim-free with discounts on their premiums.
- Boost your car’s security: Adding insurer-approved alarms, wheel locks, and other safety features could help lower your insurance premium.”
For more tips on how to get the best deal on your car insurance, visit: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/
-ENDS -
Contact Information
Rosie Johns
Notes to editors
*Based on Median premium of car insurance for policies sold through Go.Compare between 1 January 2025 and 30 April 2025, split by payment type.
**Based on annual comprehensive car insurance sales purchased through Go.Compare between January and December 2024.
For further information please contact:
Lynsey Walden on lynsey.walden@gocompare.com, or Kath Chadwick on Kathryn.chadwick@gocompare.com
Keep up-to-date with Go.Compare on X (Twitter); @GoCompare
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).
More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/.