Martin Lewis says he has been left “shocked” after learning how millions of drivers pay for their car insurance. The money expert has now told households they shouldn’t do it and offered tips about how they should pay instead.

The popular ITV presenter ran a poll on X in which he asked motorists how they pay their car insurance. And he was taken aback when thousands confirmed they pay monthly via direct debit.

Mr Lewis told drivers they shouldn’t do this as they are wasting money. He elaborated, explaining this was a loan and households get stung paying interest.

READ MORE: Nationwide confirms it will pay £100 into customers’ bank accounts

Get our best money saving tips and hacks by signing up to our newsletter

The expert said it was always cost effective to pay annually if possible, or to use a 0% credit card for those who can’t. Around a third of over 20,000 voters on the poll said they paid monthly direct debit.

It prompted Mr Lewis to issue a warning to motorists. He posted: “WARNING: Monthly direct debit is a LOAN – they pay the year for you and loan you the money often at 20-40% APR way more than a credit card. I’m shocked by how many pay by monthly DD.”

An X user questioned this, saying: “Of course it’s a loan, however, the majority of people in UK cannot afford to pay yearly amount in a lump sum, especially with how Insurance companies are inflating prices. This way at least enables people to budget and manage their finances.”

And Mr Lewis replied: “My point is it’s a COSTLY loan. If you have to, most would be far better to put it on a 0% card and repay it over the 12 months – or even a standard high st card with APR 20%, undercuts many big insurers who charge up to 40% APR.”