20 January 2021

Car insurance policy extras... are they worth it?

Cars driving through a country road

With budgets tighter than ever, many of us are looking at ways to save money, including on our insurance. However, having a cheaper insurance policy does not necessarily mean this is cost-effective and could ultimately lead to increased costs down the line.

There are many elements of cover which could prove to be more cost-effective than purchasing a cheaper policy from the outset. It is always worth checking with your broker to see if they are included either as standard or could be purchased as an additional product alongside your policy:

  • Excess protect – Excess protect can prove to be very effective. This policy will allow you to claim back a set amount of an excess that had to be paid following a claim. The premium paid for this will be significantly less than the amount of the excess you would need to pay. With car thefts at an all-time high, this product should be high on your list to purchase.
  • Key cover – As technology advances, car keys are becoming more expensive. Most insurers will provide an element of cover as standard, but it’s important to ensure that the extent of cover will be sufficient to cover the loss of your keys. Speak with your broker to ensure that there will be no surprises if you need to make a claim, especially as there are additional policies available that could give you the cover you need.
  • Breakdown cover – Organising recovery of your vehicle can be stressful and expensive at a time when all you want to do is to get home! Purchasing breakdown cover provides you with peace of mind in knowing that you won’t need to pay for recovery unexpectedly. Most high net worth insurance policies include this as standard with no additional charge. Check with your broker to see if this cover is available.
  • Agreed value – Amidst the uncertainty going on around the world, agreed value can provide you with some assurance that your pride and joy is protected as the amount that you will receive in the event of total loss will be pre-agreed. Agreed value can be provided on a number of specialist policies like classic or high value. Check with your broker if this can be provided.
  • GAP cover – Again, GAP cover is hugely beneficial and can be very cost-effective. When buying a new car, the value decreases pretty much as soon as you drive it off the forecourt. This isn’t a problem unless you have an accident and the payment you receive is not the amount that you paid for the car, but the value to replace your car with a like for like (ultimately a car that is second-hand).  Even worse, if you are paying for the car through finance, you could be in a position where the balance of your finance arrangement is great than the value of the car.       GAP cover is designed to fill the gap and bring you the peace of mind you need to enjoy your new car.
  • Courtesy car – This could prove hugely beneficial following a claim. There are policies out there which don’t include this cover as standard so always check to see if it is included. If it is included, make sure you know what type of car you’ll receive and that it will be suitable for you. High net worth insurers have a great offering and often provide a monetary amount for the client to choose the hire car of their choice!

Other aspects that we would recommend checking during these difficult times are:

  • EU cover – Is it included, or will there be a further charge later down the line if/when you decide to go?
  • Driving other cars – Check if you have this extension. High net worth insurers allow comprehensive driving of other vehicles, negating the need to be added on as a named driver.
  • Child car seat – Making sure your child car seat is covered could prove vital for a lot of families as they can be expensive to replace.

If you would like any further advice or an insurance quotation please do not hesitate to contact us.

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