The 'trap' costing drivers hundreds more in car insurance every year

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The 'trap' costing drivers hundreds more in car insurance every year
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One simple change could get you back in the driver's seat of your finances.

Some Australians are getting caught out by a car insurance trap that costs drivers hundreds of dollars extra every year.Queensland resident Mark Warnock knows running two cars and two motorbikes can quickly clean out your cash."It's an expensive exercise," he said.The insurance he has to pay isn't cheap either.

"That's why I've looked at paying annually because there's a substantial reduction in what you end up paying," Warnock said. Across three different car models, data from Compare the Market found five out of seven car insurers were charging customers who pay monthly from four per cent to a whopping 20 per cent more for their premium, compared to if they paid for 12 months up front.

Administration fees, your driving history, and the risk of claiming are among the reasons insurance companies can charge additional costs.

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