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With annual motoring costs soaring and the average Brit now paying £2,482 a year just to insure and drive their car, the pressure is on to make savings wherever possible. However, many of us are throwing additional cash away by paying monthly on our car insurance premiums instead of annually.

According to research from a comparison website, the car insurance industry scoops around £624million a year from customers that choose to pay monthly instead of annually. With typical premiums having risen by £19 in the last year alone, this is an expense drivers could do without.

So why does it cost more to pay monthly?

The majority of car insurance providers charge an annual percentage rate (APR) of around 23.9% - that's four times higher than the current best buy personal loan. While paying monthly instead of annually allows us to spread our payments and makes the overall cost more manageable, it adds close to £50 a year on to a typical premium.

For example, a Norwich Union policyholder would pay an average total of £792.05 by paying monthly on their car insurance with an APR of 24.90%. However, by paying annually this amount could be cut to £730 - a saving of £62.05. Indeed Norwich Union isn't the only example of a car insurance company that charges far more for monthly payments than a one-off annual payment. An AA insurance policyholder could see premiums fall by £68 if he chose to pay annually.

Of course paying upfront is too much for many consumers. So it's worth shopping around for a provider that doesn't add a charge for paying monthly, such as Virgin.