When you buy car insurance, you’ll often see a list of optional extras. These are called add-ons. They can seem like a good idea at first glance. But do you really need them? Many of these extras can add a lot to your premium. It’s important to know which ones offer genuine value and which ones you can safely skip. Understanding these add-ons can save you money and give you peace of mind.
Let’s break down some of the most common car insurance add-ons. We’ll look at what they offer and whether they’re worth the extra cost. This will help you make informed decisions when renewing your policy or buying a new one.
What Are Car Insurance Add-Ons?
Think of add-ons as bolt-on features for your car insurance. Your basic policy covers the essentials, like damage to your car and liability to others. Add-ons provide extra layers of protection or services that aren’t included as standard. These can range from breakdown assistance to cover for specific events or items.
The main reason insurers offer these is to tailor policies to individual needs. However, they also represent a significant revenue stream for them. It’s easy to get swayed by the promise of extra security, but it’s vital to assess if the cost justifies the benefit for your personal circumstances. What I’d check first is whether I already have similar cover elsewhere, perhaps through my bank account or a separate membership.
Why You Might Need Extra Cover
The need for car insurance add-ons often depends on your lifestyle and the type of car you drive. If you rely heavily on your car for work or family, any disruption can be costly. For example, if your car is your livelihood, being without it due to a breakdown or accident could mean lost income. In such cases, comprehensive breakdown cover might be a worthwhile investment.
Consider the value of your car too. If you drive a newer, high-value vehicle, you might want to explore options that offer enhanced protection against theft or damage. Some add-ons can also be particularly useful if you frequently travel abroad or if you’re a young or inexperienced driver facing higher premiums. If I were driving a brand-new car, I’d want to ensure I had protection that covers the full replacement value, not just the market value, in the event of a total loss.
The decision isn’t always straightforward. For instance, many people assume their standard breakdown cover is comprehensive, only to find out it only covers roadside assistance and not recovery to a garage. This is a common misunderstanding that can lead to unexpected bills.
A car insurance claim can be a stressful experience. Having the right add-ons can simplify the process and reduce financial strain. For example, motor legal protection can be invaluable if you’re involved in an accident that wasn’t your fault.
It’s also worth considering the specific risks associated with your driving habits. If you often drive in areas known for higher crime rates, anti-theft devices or enhanced security features might be a sensible consideration. The key is to match the add-on to a genuine risk you face.
Common Car Insurance Add-Ons: A Closer Look
Dashcam Cover
Dashcams are becoming increasingly popular. They record your journeys and can provide invaluable evidence if you’re involved in an accident. About half of car owners who use a dashcam have used recorded footage as evidence in car insurance claims. This can help prove you weren’t at fault, potentially protecting your no-claims discount and avoiding increased premiums.
Some policies offer specific dashcam cover, which might include assistance with retrieving footage or even cover for the cost of the dashcam itself if it’s damaged in an accident. However, many standard policies will accept dashcam footage as evidence without a specific add-on. The real benefit is often in the evidence itself, rather than a specific insurance product feature. If I were considering a dashcam, I’d look at one with good recording quality and a wide field of view, like the Garmin Dash Cam X310, and then check if my insurer values the footage without a special add-on.
Breakdown Cover
Breakdown cover is one of the most common add-ons. It provides assistance if your car breaks down at home or on the road. Options typically include roadside assistance, towing to a garage, and sometimes onward travel or accommodation if your car can’t be fixed immediately. Policies vary significantly, so it’s crucial to understand what’s included. Some basic policies only cover roadside assistance, meaning you might still have to pay for recovery to a garage.
Many people already have breakdown cover through other means, such as a car manufacturer’s warranty, a breakdown club membership, or even some bank accounts. Before adding it to your insurance, check if you’re already covered. If you’re not, and you drive a lot or have an older car, it could be a sensible purchase. The AA Vehicle Breakdown Safety Kit is a useful addition to any car, regardless of breakdown cover.
Motor Legal Protection
This add-on covers the costs of legal representation if you need to pursue or defend a claim for damages following a road traffic accident. It can be particularly useful if you’re involved in an accident that wasn’t your fault and you want to recover uninsured losses, such as your excess, vehicle hire costs, or lost earnings. Without this cover, legal fees can quickly mount up, even if you win your case.
The benefit here is access to specialist legal advice and representation without upfront costs. It’s important to note that this cover usually only applies to accidents that are not your fault. If you’re likely to be involved in disputes or if you want the peace of mind that legal costs are covered, this could be a valuable add-on. My first move would be to check if my home insurance or bank account already offers any legal expenses cover before paying extra for this on my car insurance.
Protected No-Claims Discount (NCD)
Your no-claims discount is a reward for each year you go without making a claim. It can significantly reduce your premium. Protected NCD allows you to make a certain number of claims over a set period without losing your discount. Typically, you can make one or two claims in three or five years, depending on the insurer’s terms.
This add-on is most beneficial for drivers who have built up a substantial no-claims discount and want to protect it. However, it comes at a cost, and the premium increase for this cover might outweigh the potential saving if you rarely make claims. You need to weigh the cost of the protection against the potential increase in your premium if you do have an accident. If I had a high NCD, I’d calculate how much my premium might increase after a claim versus the annual cost of protecting it.
Hire Car Cover
If your car is stolen or damaged and needs to be repaired, hire car cover can provide you with a replacement vehicle. The terms vary: some policies offer a basic courtesy car from the repairer, while others provide a similar-sized vehicle from a hire company. Some policies only provide a hire car if your vehicle is stolen and not recovered, or if it’s declared a total loss.
This add-on is particularly useful if you rely on your car daily and cannot afford to be without transport. However, if you have a second car, use public transport, or can easily rent a car yourself if needed, you might not need this. It’s also worth checking if your insurer already provides a courtesy car as standard, which might be sufficient for your needs. The VYNCS Pro device offers diagnostics and trip history, which could be useful for fleet management but not directly related to hire car cover.
Windscreen Cover
This add-on specifically covers the cost of repairing or replacing your car’s windscreen. If you have a standard policy, windscreen damage might be covered under your comprehensive insurance, but it could affect your no-claims discount. Windscreen cover as an add-on often allows you to get chips or cracks repaired or replaced without impacting your NCD and sometimes without paying any excess.
The value of this add-on depends on the likelihood of windscreen damage and your insurer’s policy on NCDs. If you drive in areas with lots of lorries or on rough roads, you might be more prone to chips and cracks. Many insurers offer free windscreen chip repairs, so it’s worth checking what your standard policy includes. If I had a lot of stone chips on my windscreen, I’d look into whether my insurer offers free repairs before paying for a specific add-on.
When Add-Ons Aren’t Worth It
Overlapping Cover
One of the biggest pitfalls is paying for cover you already have elsewhere. Many people have breakdown cover through a motoring organisation or even their bank account. Similarly, some credit cards offer breakdown assistance or excess protection. Before adding any cover to your car insurance, always check your other financial products and memberships. If you’re already covered, paying for it again is simply wasting money.
If I discovered I was paying for breakdown cover on my car insurance and also had it through my bank, I’d cancel the insurance add-on immediately and save the premium. This is a common area where people overspend without realising it.
Low-Risk Drivers
If you’re a very low-mileage driver, you might not face the same risks as someone who commutes long distances daily. For example, the chances of a breakdown or needing a hire car might be significantly lower. Similarly, if you drive a very old, low-value car, the cost of insuring it might already be low, and adding extras might not be cost-effective.
For drivers who rarely use their car, the added cost of extras like hire car cover or protected NCD might not be justified by the reduced risk. It’s about assessing your personal driving habits and the likelihood of needing the cover. The Stoplock Steering Wheel Lock is a physical deterrent that can reduce theft risk, which might be more cost-effective than an insurance add-on for some.
Expensive Add-Ons for Minor Benefits
Some add-ons offer very specific benefits that might not be relevant to everyone. For example, cover for personal belongings stolen from your car might be included in your home insurance policy. Always read the policy documents carefully to understand what’s covered and what isn’t. If the cost of the add-on is high and the benefit is minor or already covered elsewhere, it’s probably not worth it.
The Yale Small Value Safe could be used to secure valuables in a vehicle, but this is a physical security measure, not an insurance add-on.
It’s a common mistake to assume that more cover always means better protection. Sometimes, the standard policy is sufficient, and the add-ons are simply designed to increase the insurer’s profit margin. If I were unsure about a specific add-on, I’d call my insurer and ask for a clear explanation of what it covers and how it differs from my existing policy.
Making the Right Choice for You
Assess Your Needs Honestly
The most crucial step is to honestly assess your driving habits, your car, and your personal circumstances. Do you drive long distances? Is your car essential for your work? What is the value of your car? How likely are you to be involved in an accident?
Answering these questions will help you identify genuine risks and needs. For example, if you have a young driver in the household, you might consider telematics insurance, which monitors driving behaviour. While not strictly an add-on, it’s a policy variation that can offer savings for careful drivers.
Compare Policies Carefully
When shopping for car insurance, don’t just look at the headline price. Compare the details of what each policy includes and the cost of any optional add-ons. Use comparison websites, but also get quotes directly from insurers. Always read the policy wording to understand exclusions and limitations.
If I were comparing policies, I’d create a spreadsheet to list the base price and the cost of each add-on I was considering, along with what each add-on actually covers. This makes it easier to see the true cost of comprehensive cover.
Understand the Excess
Many add-ons, like windscreen cover or breakdown cover, might have an excess. This is the amount you have to pay towards a claim. Some add-ons, like protected NCD, are designed to help you avoid paying an excess or losing your NCD. Always clarify the excess amount associated with any add-on before you buy it.
Read the Small Print
This is perhaps the most important advice. Insurance policies, including add-ons, are full of terms and conditions. What seems like comprehensive cover might have significant exclusions. For instance, hire car cover might only apply if your car is stolen and not recovered, not if it’s being repaired after an accident.
If I were buying an add-on, my first action would be to locate the policy wording and read the section specifically related to that add-on. I’d pay close attention to any conditions or limitations mentioned.
Frequently Asked Questions
Is breakdown cover worth it as an add-on? ▾
When should I consider motor legal protection? ▾
Does a dashcam need a specific insurance add-on? ▾
What is protected no-claims discount? ▾
Should I get hire car cover? ▾
Choosing the right car insurance add-ons is about making informed decisions based on your individual needs and risks. By understanding what each add-on offers and comparing it against your existing cover and circumstances, you can avoid paying for unnecessary extras and ensure you have the protection that truly matters.
If this was useful, you might also want to read Car Insurance Cover: Are You Really Protected From These UK Road Risks?.
Sources and Further Reading
New car add-ons: Worth paying for, and others you can skip. SlashGear, 2024.
Garmin Dash Cam X310. Amazon.
AA Vehicle Breakdown Safety Kit. Amazon.
Stoplock Steering Wheel Lock. Amazon.
Car Insurance Cover: Are You Really Protected From These UK Road Risks? — This article explores common gaps in car insurance cover and highlights areas where drivers might be underprotected, offering practical advice on ensuring comprehensive protection against various road risks.
Prevent Car Insurance Fraud: Top Tips for UK Drivers — Learn how to identify and avoid insurance fraud, which can impact premiums for all drivers, and discover ways to protect yourself from being targeted by fraudulent schemes.
