British motorists could find that a greater proportion of money from their car loan is being taken up by insurance, as a new study indicates a number of providers are cashing in on "hidden charges".

Research conducted by KwikGuides.com reveals that millions of drivers are paying hundreds of pounds for services they believed are automatically covered by their premiums.

The survey suggested that as insurance firms fail to make it clear in their policies motorists could find themselves being charged to drive their car abroad or changing their address, reports the Evening Standard.

Author of the report Stuart Coster told the publication: "Some insurers are cashing in. Millions of drivers are hit yet their premium already includes a good proportion of profit for the insurer."

It is thought drivers are paying up to £150 for such services, once included as a basic feature of the policies, which in turn could impact upon debt management and ability to make loan repayments.

Earlier this year, a study by Co-operative Insurance indicated that motorists may find themselves with increased car loan costs as insurance premiums rise due to more road accidents.

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