Consumers who opt for monthly car insurance as opposed to an annual lump sum are paying more, new research has found.

According to a study by uSwitch.com, an extra £624 million more a year is spent by people who choose to pay for their car insurance on a monthly basis.

The price comparison site found the average price of a policy is now £459.44 for those who pay a lump sum, while for pay as you go insurance it is £506.76.

Over half per cent of car insurance customers choose this form of insurance cover, paying an extra £50 per person per year by doing so.

With the price of food and petrol increasing motorists should be looking for ways to save money and avoiding pay monthly car insurance is one of them, according to Ashton Berkhauer, insurance expert at the website.

"It may seem like a neat solution if you're cash strapped but it carries a hefty interest price tag so should be avoided where possible. This really is an unnecessary expense which merely inflates the cost of the policy," he said.

Recently the British Insurance Brokers Association found the number of uninsured drivers on the UK's roads is decreasing.

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