Car Insurance Add-ons: Are They Worth It? BritWealth’s Expert Opinion.

Car insurance can feel like a minefield. You’ve got the basic policy, but then there are all these optional extras. Are they just ways for insurers to make more money, or do they offer genuine protection? It’s a question many drivers grapple with, especially when premiums seem to be on the rise. In fact, drivers are cutting back on optional extras as insurance premiums rise.

1 in 6
UK drivers lack tyre damage protection
go.microsoft.com

3 in 10
UK drivers have key cover
go.microsoft.com

Fewer than half
UK drivers have personal accident cover
go.microsoft.com

Nearly 1 in 5
UK drivers reduced breakdown cover
go.microsoft.com

Understanding what’s included and what’s not is key. Standard car insurance won’t help if your car simply breaks down. This is where add-ons come in. But with so many available, it’s easy to feel overwhelmed. Here’s what you actually need to know.

Assess Your Needs
Consider your driving habits and the age/value of your car. What risks are you most exposed to?

Compare Policy Wording
Don’t just look at the price. Understand what each add-on covers, including limits and exclusions.

Check Existing Cover
Some comprehensive policies might already include certain benefits, like windscreen cover.

Cost vs. Benefit
Weigh the cost of the add-on against the potential cost of a claim without it.

Understanding Car Insurance Levels

Before diving into add-ons, it’s helpful to know the basic types of car insurance. The minimum legal requirement in the UK is Third-Party Only (TPO) cover. This is a criminal offence to drive without, as stated in the Road Traffic Act 1988. TPO covers damage to other people’s property but not your own car or any injuries you sustain.

Third-Party Only (TPO)
The minimum legal insurance cover, protecting only damage to other people’s property.

Next up is Third-Party, Fire and Theft (TPFT). This includes everything TPO offers, plus cover if your car is stolen or damaged by fire. The most comprehensive level of cover is Comprehensive (Comp). This covers damage to your own vehicle, even if you’re at fault, and often includes extras like windscreen cover as standard. If I were choosing between these, I’d lean towards comprehensive cover for the peace of mind it offers, even if it costs a little more upfront. It usually covers more eventualities, which can save money and stress down the line.

Optional Extras: What They Are and Why You Might Need Them

Add-ons are designed to enhance your standard car insurance policy. They can cover specific risks that aren’t included in the basic package. Think of them as tailored protection for particular concerns.

One common add-on is breakdown cover. While not strictly an insurance policy, it’s often sold alongside one. Nearly one in five UK drivers have reduced or cancelled their breakdown cover to save money. However, if your car breaks down, you’ll need this service to get roadside assistance or recovery. Standard insurance won’t help here.

Key cover is another add-on that many drivers overlook. Replacing lost or stolen car keys and locks can be surprisingly expensive, costing hundreds of pounds. Key cover policies typically have limits ranging from £100 to £2,500. Only around three in 10 UK drivers have key cover, leaving many vulnerable.

Tyre and puncture protection is also available. One in six UK drivers lack protection for tyre damage or punctures. While not always a standard inclusion, it can be a valuable add-on if you frequently drive on roads prone to damage or have experienced tyre issues before.

Key Cover Limits
Key cover policies typically have cover limits ranging from £100 to £2,500, offering significant protection against the high cost of replacing lost or stolen keys and locks.

If I were driving a lot in areas with poor road surfaces, I’d definitely consider tyre protection. It’s a relatively small cost for peace of mind against potentially expensive repairs or replacements.

Legal and Personal Protection Add-ons

Beyond mechanical issues, there are add-ons for legal and personal protection. Legal expenses cover is one such option. Around four in 10 UK drivers have legal expenses cover. These policies usually offer between £50,000 and £100,000 of cover. This can help with the costs of pursuing legal action against another party following an accident, or defending yourself if you are sued.

Personal accident cover is another important consideration. Fewer than half of UK drivers have personal accident cover. This type of cover can provide a payout if you or your passengers suffer specific injuries in a car accident. The compensation can be used for medical expenses, loss of earnings, or other costs associated with the injury.

Loss of earnings cover is specifically for situations where you couldn’t work due to an injury from an accident. This can be a lifeline if you rely on your income and are unable to work for an extended period. Similarly, alternative transport costs cover helps with hiring a car while yours is being repaired after an incident.

Personal injury compensation can also cover legal fees for pursuing a claim for injury to you or your passengers. For drivers with TPO/TPFT policies, there’s also cover to help recover repair costs from their insurer if you are hit by an at-fault driver.

If I had dependents or a job where my income was crucial, I’d look closely at personal accident and loss of earnings cover. The potential financial impact of being unable to work after an accident could be severe, and these add-ons offer a safety net.

→ Scroll right to see all columns
Source: go.microsoft.com
Insurance LevelCovers Damage to Your VehicleCovers Fire DamageCovers TheftCovers Third-Party Damage
Third-Party Only (TPO)NoNoNoYes
Third-Party, Fire & Theft (TPFT)NoYesYesYes
Comprehensive (Comp)Yes (regardless of fault)YesYesYes

Common Misunderstandings About Add-ons

One common mistake is assuming that all comprehensive policies include everything. While comprehensive cover is the broadest, it’s still wise to check the specifics. For instance, windscreen cover is often standard, but there might be limitations on the number of claims or the type of damage covered. It’s crucial to read the policy document carefully.

Another misunderstanding is about the cost of add-ons versus the potential payout. Some drivers might dismiss an add-on as too expensive without considering the potential cost of a claim if they don’t have it. For example, replacing all your car keys could easily exceed the cost of a key cover policy for several years.

Many people also don’t realise that add-ons often have their own limits and excesses, just like the main policy. A legal expenses cover policy might offer £100,000 of cover, but there could be an excess to pay on any claim. Similarly, key cover policies have limits, so they might not cover the full cost of replacing very high-end car keys.

If I found myself needing to replace a key, I’d want to know the exact limit of my key cover policy before committing. It’s easy to assume it covers everything, but understanding the specifics is vital to avoid unexpected costs.

Making the Right Choice for Your Car Insurance

Deciding which add-ons are worth it depends entirely on your individual circumstances. There’s no one-size-fits-all answer. If you drive an older car that’s not worth much, comprehensive cover might be overkill, and you might focus on essential legal protection. For newer, more valuable cars, comprehensive cover and potentially extras like guaranteed replacement vehicles are more sensible.

Consider your driving environment. If you regularly drive long distances or in areas with poor road conditions, tyre protection or breakdown cover could be a wise investment. If you live in a high-crime area, enhanced security features or even a dash cam, which some insurers might offer a discount for, could be beneficial.

If I were buying a new car, I’d check if any advanced safety features or telematics devices could lower my insurance premium. Sometimes, investing in technology like a dash cam, such as the Garmin Dash Cam X310, can lead to discounts and also provide evidence in case of an accident.

Ultimately, the goal is to find a balance between adequate protection and affordability. Review your policy annually and reassess your needs. What was right for you last year might not be right this year.

  • 1
    Assess Your Vehicle’s Value
    Is your car new and valuable, or older and worth less? This impacts the level of cover you need.

  • 2
    Evaluate Your Driving Habits
    Do you drive long distances, in challenging conditions, or in high-risk areas?

  • 3
    Review Policy Wording Carefully
    Understand the limits, excesses, and exclusions of any add-on before purchasing.

  • 4
    Compare Costs and Benefits
    Weigh the annual cost of the add-on against the potential cost of a claim without it.

  • Frequently Asked Questions About Car Insurance Add-ons

    Does comprehensive insurance cover everything?
    While comprehensive is the broadest cover, it doesn’t include everything. Always check policy details for specific exclusions and limitations.
    Is breakdown cover the same as car insurance?
    No, breakdown cover is a separate service that provides roadside assistance and recovery, not typically included in standard car insurance policies.
    How much does key cover usually pay out?
    Key cover policies typically have limits ranging from £100 to £2,500, helping to cover the cost of replacing lost or stolen keys and locks.
    When is legal expenses cover most useful?
    It’s most useful if you need to pursue legal action after an accident or defend yourself against a claim, covering associated legal fees.
    Can I add an extra driver to my policy?
    Yes, you can usually add other drivers to your policy, but this may affect your premium depending on their driving history and age.

    Choosing the right car insurance add-ons is about understanding your personal risks and making informed decisions. By carefully reviewing your policy and considering your needs, you can ensure you have the protection that matters most.

    If this was useful, you might also want to read How to Choose the Right Car Insurance in the UK.

    Sources and Further Reading

    How to Choose the Right Car Insurance in the UK — This guide helps you navigate the complexities of selecting the best car insurance policy for your needs.

    Tips for Managing Penalty Points and Car Insurance in the UK — Learn how penalty points can affect your insurance premiums and what steps you can take.

    Microsoft Services Agreement. Microsoft, 2023.

    Microsoft Privacy Statement. Microsoft, 2023.

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    Sam Willy

    I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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