That's according to a new report by Cuvva, a pay-as-you-go policy app, that claims almost one million British motorists are paying needlessly for a service they rarely use - to the tune of £300 a year.
In a report, Cuvva found there are more than 821,000 drivers in the UK who spend one hour a week or less behind the wheel.
Those on an annual insurance policy will effectively be paying £16 an hour to be on the road, with the average annual premium now £847.
The app reckons that if these drivers switch from an annual premium to a pay-as-you-go policy, they could bring their annual cost of cover down to around £570 a year, a £277 saving.
If all 821,000 were to make the switch, the saving would be more than £227 million annually.
Car owners in London are also most likely to benefit from reviewing their insurance deal in this way, as the capital's motorists use their cars less frequently than anywhere else in the UK.
An estimated 7% of London's 1.9 million households - that's 138,000 drivers - use their vehicle for just one hour a week or less.
Those living in the northwest, northeast and Wales are likely to use their car more frequently.
In the past year, the cost of car insurance has soared by 11%, due to regulatory changes to the discount rate used to calculate personal injury claims.
The price increase has hit young drivers particularly hard, with recent Cuvva research revealing that the cost of running a car eats up 20% of a young driver's annual take-home pay.
Freddy Macnamara, founder and CEO of Cuvva, said: "A lot of drivers only need their car once in a blue moon, yet they often end up paying the same price for their insurance policy as someone who is constantly on the road.
"This is clearly an unfair situation and the insurance industry needs to start promoting a more flexible approach, encouraging drivers to seek out cost-effective insurance policies which suit their needs.
"At a time when high inflation and low wage growth are putting a real squeeze on household budgets, the potential to shave hundreds of pounds a year off car insurance through switching from an annual policy to pay-as-you go could be the difference between affording a holiday or not."