Are car insurance extras worth the price?
When it comes to renewing your car insurance, you may be offered 'extras' - like guaranteeing your no claims discount, opting for legal expenses, breakdown cover or the use of a courtesy car.
But which are worthwhile add-ons, and which unnecessary extra costs?
Sarah Routledge looks into covering all eventualities on your car insurance.
"I think they are all worthwhile, it is just about getting what you need," says William Thomas, head of car insurance for Confused.com.
At one time, everything would have been included on a comprehensive policy. But competition and a drive to reduce prices have led insurers to strip policies back to the basics, then offer additional services for those who want them.
But while consumers are naturally price-conscious, many are also concerned with the features of a policy and insurers have several innovative add-ons that should be considered.
No claims discount protection
A no claims discount (NCD), or no claims bonus, can bring an insurance policy down by hundreds of pounds. But it can be lost in a second - and it does not even have to be your fault.
If a claim is made and the insurance company cannot recoup its costs elsewhere - for example, if the other party is uninsured, or untraceable - then the NCD may be knocked down by a couple of years or even reset to zero, and the motorist will see a sharp rise in their premiums.
As it takes five years to build up to the maximum level again, drivers with several years of no claims are often advised by their insurer once they come to renew to pay more to protect this discount, to keep costs down in the event of an incident.
"If you make a claim on your insurance, you will probably lose two years of your no claims bonus, so it can be great," Mr Thomas says.
This could mean your premiums rise by 20 per cent or more when you next come to renew your policy, so in the event of an incident you will save money in the long run.
"But what isn't often explained is that the policy will still be rated," Mr Thomas warns.
"So what you get is a discount on a higher premium."
Insurers work out the cost of your premium based on a complicated formula that includes factors such as your profession, postcode, car model and risk history. At some point other discounts are added in, such as NCD.
But if you claim over and over again, your premium will go up regardless of whether you have protected your NCD as you will be seen as more of a risk.
This makes insurers' claims of a guaranteed NCD protection for the life of the policy a "gimmick", according to Mr Thomas, as multiple claims will push up your premium anyway.
"It does prevent a double whammy of losing your NCD and seeing your premiums rise, though," Mr Thomas added.
Legal expenses cover
Legal expenses cover pays out for any losses not included on the policy.
These could include pursuing compensation for injuries suffered in an accident, the costs of hiring a car, the costs of sorting out the claim and the excess.
If not already included in the policy, legal expenses cover typically adds between £15 and £20 to the annual cost of a policy.
Cover differs from policy to policy, so make sure you know what you would be liable for in the event of a claim, and this should help you decide whether you want the extra safety net of legal expenses cover.
"The reason to have legal cover is to make sure you are covered against liabilities to a certain level. If there is a multi-car accident on the motorway, it can get very complicated," says Steve Sweeney from. Moneysupermarket.com.
"A lot of people choose it as a safety net," he explains.
Legal cover will pay for a solicitor to pursue your claim for compensation if you are injured in a crash, and if you have to take time off work, it will also reimburse you for lost earnings - which could be essential if you are self employed and do not have the benefit of sick pay.
And if your case is disputed and ends up in court, you will also be covered for the costs of legal proceedings. Potentially, legal expenses cover could be a small price to pay compared to court costs.
Before you choose this as an option, check you are not already entitled to free legal advice - some trade unions, motoring bodies and professions will give you this service.
Courtesy car
"I think the thing about extras is they are there for a reason," says Mr Sweeney.
"The one I would highlight is a courtesy car. Some policies include a courtesy car, some come as an extra. But for me, staying on the road is a high priority."
If you use your car every day and it is essential to your work or daily routine, being without it while repairs or an insurance claim is being resolved - which could take months if it is complicated - would leave you with the expense of hiring a car yourself.
Most insurance policies do not include a courtesy car as standard, so you may need to pay extra if you will need this service.
Don't expect to get the same make or model as your own car, however. Most courtesy cars are small vehicles that may not meet your expectations.
Churchill does offer a 'guaranteed car hire plus' option, for an extra fee, which ensures your hire car will at least match the physical size of your car.
And if you are offered a courtesy car as part of your insurance claim, make sure you check the small print of the contract that comes with it: the excess in the event of an accident is usually very high, and you may need extra insurance to cover it.
Breakdown Cover
Many insurers also offer breakdown cover. If you have ever had a breakdown, you will know how important having this cover is, and if you have an older car the chances are at some point you will need it.
But this is also something that you could organise yourself, Ian Crowder from AA Insurance points out.
"Breakdown cover is something that you may already have - for instance, if you are a Lloyds Platinum bank customer you probably automatically have AA membership.
"You may get a better deal by buying breakdown cover separately if it is being offered as an extra on top of your premium," he adds.
Check if your insurer is offering the kind of breakdown cover you want with a company you are happy with, and check the price against the cost of buying it yourself before ticking this box.
Other ways of saving money on your policy
There are plenty of other ways to save money on your car insurance.
"There is always a temptation to strip back the policy, but you only realise the benefits of insurance when you need it. The best way to save is to use a company like Moneysupermarket.com to compare policies, and save cash that way," Mr Sweeney recommends.
"If you have an old car with a relatively low value, consider taking out third party, fire and theft cover instead of comprehensive," Mr Crowder recommends.
Ensuring your car has good security protection and preferably leaving it in a garage overnight will also cut down on premiums, Mr Crowder adds.
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