Millions of British drivers could face huge monthly charges when paying for car insurance

Motorists across the country could be facing massive charges when paying for their car insurance, according to concerning new data.Fresh analysis from Which? shows that some drivers who pay monthly for their insurance could be being charged as much as 30 per cent extra for their cover.It warned that some insurance companies are charging motorists annual percentage rates (APRs) comparable to expensive credit cards.The consumer finance website stated that some APRs were as close to 30 per cent on monthly motor insurance payments. TRENDING Stories Videos Your Say Data collected between February and March earlier this year showed that several firms were charging APRs above 25 per cent.One insurance firm was charging as much as 29.9 per cent for a driver to pay for their car insurance on a monthly basis.Drivers will often pay for their insurance on a monthly basis because an upfront cost of hundreds of pounds is not feasible for millions of people around the country.The report highlighted this, with many still dealing with the cost of living crisis, making it impossible for them to budget in a large upfront payment.While the high rates continue to batter drivers' finances, some firms were charging above 35 per cent APR two years ago.While some providers have lowered their rates since then, Which? claimed that progress has been too slow, as many drivers were still being slapped with extra costs.Earlier this year, Which? attempted to contact 61 car insurance brands, with 48 responded with their rates, or clarified that they did not charge extra for paying monthly.Rocio Concha, director of policy and advocacy at Which?, lamented the fact that many are still charged such high interest rates.LATEST DEVELOPMENTSThousands face Motability mileage cut within weeks amid fears drivers will lose vital 'lifeline'UK 'risks Dieselgate 2.0' as drivers set to fork out billions for expensive plug-in hybridsLabour cutting electric car targets could threaten £385bn economic boost, damning report warnsShe added that millions of motorists continue to rely on monthly payments to afford essential car insurance cover, but are hamstrung by expensive costs.This was echoed by a spokesperson for the Association of British Insurers (ABI), who acknowledged that many people needed to be in instalments.They said the insurance industry recognised that many households were under financial pressure because of the cost of living crisis and high insurance prices.Data from the ABI between January and March 2026 found that the average premium for drivers was £560 - a £1 rise compared to the previous quarter.Despite this, motorists have seen a £30 year-on-year fall in average insurance prices and savings of almost £80 since a peak in Q1 of 2024 (£636).The spokesperson added: Our members remain committed to improving outcomes, and this includes being open about the fact that providing this service involves genuine operational costs - including keeping cover in place for a period even when payments are delayed or missed.Our premium finance principles make clear that any charges must be fair, transparent, and reflective of the costs incurred by insurers.The FCA's (Financial Conduct Authority's) own market study found that premium finance can deliver fair value for consumers and that the overall cost of premium finance has fallen since 2022. Our Standards: The GB News Editorial Charter