Comparison site Money Expert has found 35% of drivers will consider monthly payment options when they next renew their motor policy due to recent rate rises. The figure jumps to 51% for drivers aged 35 to 44 and to 40% for those aged 18 to 40.

Liz Hunter, commercial director at Money Expert said: “Previously, young drivers have had to endure high costs of car insurance, due to their increased risk and lack of experience on the road. However, the data from our survey has highlighted that drivers of all ages are being stung on costs when it comes to renewing their annual policy.”

She added: “As prices continue to rise, they start to become unaffordable for many to pay off in one lump sum, effectively forcing policyholders to pay for their car insurance in monthly instalments.

“Whilst this may seem like a more manageable way to cover the cost for their premiums, motorists will pay more for their car insurance over the course of the year. Opting for monthly instalments can add as much as 10% onto the overall cost of a driver's annual cover, due to the added interest that many insurance providers include.”