The Secret Car Insurance Add-Ons You’re Probably Paying For (And Don’t Need).

Many car insurance policies come with a range of add-ons. Some offer valuable protection. Others might be a waste of your money. It’s easy to feel overwhelmed by the choices. You might end up paying for cover you don’t really need. This can add a significant amount to your annual premium. Understanding what each add-on does is key. It helps you decide if it fits your driving habits and risk profile.

50%
of dashcam users have used footage in claims
slashgear.com

1 in 6
UK drivers lack tyre damage protection
which.co.uk

3 in 10
UK drivers have key cover
which.co.uk

Fewer than half
UK drivers have personal accident cover
which.co.uk

4 in 10
UK drivers have legal expenses cover
which.co.uk

Nearly 1 in 5
UK drivers reduced breakdown cover
which.co.uk

This guide will help you navigate the common car insurance add-ons. We’ll look at what they offer and whether they are worth the extra cost. Here’s what you actually need to know.

Review Your Policy Annually
Insurance needs can change. Always review your policy each year to ensure it still meets your requirements.

Understand Policy Limits
Know the maximum amount your policy will pay out for specific claims, especially for add-ons like legal expenses.

Compare Prices Regularly
Don’t stick with the same insurer year after year. Comparison sites can help you find better deals.

Consider Your Driving Habits
Add-ons like breakdown cover or personal accident cover are more relevant if you drive frequently or long distances.

Understanding Car Insurance Add-Ons

Add-on
An optional extra coverage that can be added to a standard car insurance policy for an additional fee.

Car insurance policies can seem straightforward. You pay a premium, and you’re covered for certain events. However, insurers often present a menu of optional extras. These are known as add-ons. They can significantly alter the scope of your protection. Some are designed to cover specific risks not typically included in a standard policy. Others might duplicate cover you already have or can get elsewhere more cheaply.

It’s important to know that not all add-ons are created equal. Some are genuinely useful, depending on your circumstances. Others are often sold as essential but are rarely needed. If I were in this situation, I’d want to understand the core coverage first. Then, I’d look at add-ons that address specific gaps or high-risk scenarios for me personally.

When Extra Cover Might Be Necessary

Certain add-ons can provide peace of mind. They can also offer financial protection against specific events. For example, breakdown cover is a common add-on. Nearly one in five UK drivers have reduced or cancelled their breakdown cover to save money. However, if you drive long distances or in remote areas, it could be a worthwhile investment. It means you’re not stranded if your car breaks down.

Tyre damage cover is another add-on to consider. Around one in six UK drivers lack protection for tyre damage or punctures. If you frequently drive on roads prone to potholes or debris, this could save you money on expensive tyre replacements.

Personal accident cover is also an option. Fewer than half of UK drivers have personal accident cover. This provides a payout if you or your passengers are injured in a car accident. It can help cover lost earnings or medical expenses not covered by the NHS.

My first move would be to check my existing breakdown provider. Sometimes, they offer better rates than adding it to my car insurance. This can save money while still getting the cover I need.

Key Cover Limits
Key cover limits typically range from £100 to £2,500. This should be enough to cover the cost of replacing lost or stolen car keys and reprogramming.

Common Insurance Add-Ons You Might Not Need

Some add-ons are frequently pushed by insurers, but their value can be questionable. Let’s look at a few you might be able to skip.

Gadget Cover

Some policies offer cover for gadgets like sat-navs or mobile phones if they are stolen from your car. However, many home insurance policies already provide cover for personal belongings taken out of the home. You should check your home insurance policy first. It might already cover your devices, making this add-on redundant.

Windscreen Cover

While windscreen cover can be useful, many comprehensive car insurance policies already include it. If your policy does not, you need to weigh the cost of the add-on against the potential cost of a windscreen repair or replacement. Sometimes, specialist windscreen repair companies can fix chips for free if you have comprehensive insurance, even without a specific add-on.

Legal Expenses Cover

This add-on covers the costs of legal representation if you’re involved in a dispute related to a car accident. Around four in 10 UK drivers have legal expenses cover. Most policies offer between £50,000 and £100,000 of cover. However, many people find they already have this protection through their bank account or credit card. It’s worth checking these options before paying extra for it on your car insurance.

If I were considering legal expenses cover, I’d first check my bank statements. Many current accounts offer legal assistance services as a perk. This could save me the cost of the add-on entirely.

Dashcam Footage as Evidence

While not strictly an add-on in the same way, some insurers might offer discounts or benefits if you use a dashcam. About half of car owners who use a dashcam have used recorded footage as evidence in car insurance claims. This can be helpful in proving your innocence in an accident. However, the cost of a dashcam and the potential discount might not always balance out. You can purchase dashcams separately, like the Garmin Dash Cam X310, which offers high-quality recording and GPS features.

→ Scroll right to see all columns
Source: Which?
Add-OnTypical Use CaseConsider If…Potential Overlap
Breakdown CoverVehicle recovery after mechanical failureYou drive long distances or in remote areasSeparate breakdown provider membership
Tyre Damage CoverRepair or replacement of damaged tyresYou drive on poor road surfacesHome insurance (limited)
Personal Accident CoverPayout for injury or death in an accidentYou want financial support beyond standard medical careLife insurance, critical illness cover
Legal Expenses CoverCovers legal costs for disputesYou anticipate potential legal battles related to drivingBank account benefits, credit card perks

Making Informed Decisions About Your Policy

When you’re buying or renewing your car insurance, take your time. Don’t just click “yes” to every optional extra presented. Read the policy documents carefully. Understand what each add-on covers and its limitations.

Key Cover

Losing your car keys can be a significant hassle. Only around three in 10 UK drivers have key cover. This add-on typically covers the cost of replacing lost or stolen car keys and reprogramming. Limits often range from £100 to £2,500. If you are prone to losing things, this might be worth considering. However, check if your home insurance or a dedicated key insurance policy offers better value.

Excess Protection

This add-on protects your voluntary excess, meaning you won’t have to pay it if you make a claim. For example, if you have a £250 excess and make a claim, you won’t have to pay that £250. This can seem appealing, but the cost of excess protection can often outweigh the amount of excess you might save over the policy year. It’s often cheaper to simply set aside the excess amount yourself.

Courtesy Car

Many comprehensive policies include a courtesy car if yours is stolen or being repaired by an approved garage. If yours doesn’t, you might be offered this as an add-on. Before paying for it, check if your insurer already provides one. If not, consider if you really need one. Can you rely on public transport or a friend or family member for short periods?

In that case, I’d want to secure my car against theft. A physical deterrent like a Stoplock Steering Wheel Lock can be a more cost-effective way to deter thieves than relying solely on insurance add-ons.

1
Assess Your Needs
Think about your typical driving patterns, the roads you use, and your personal circumstances.

2
Read Policy Documents
Carefully review what each add-on covers and its limitations. Don’t assume you know what it means.

3
Check Existing Cover
See if your home insurance, bank account, or credit cards already provide similar protection.

4
Compare Prices
Get quotes for add-ons from different insurers and compare them to standalone policies.

When to Reconsider Your Insurance

It’s not just about add-ons. Sometimes, the entire insurance policy might not be the best fit anymore. If your circumstances have changed significantly, you might need to reassess your cover. For instance, if you’ve recently bought a new car, its features might affect your insurance needs. Similarly, if you’ve moved house or changed your job, this could impact your premium and the type of cover you require. Always ensure your policy reflects your current situation.

If this was useful, you might also want to read Are Comparison Websites Giving You the Best Car Insurance Deal? UK Investigation.

Frequently Asked Questions

Is breakdown cover always worth it?
It depends on your driving habits. If you drive long distances or in remote areas, it’s often worthwhile. For city drivers, it might be less essential.
Can I get cover for my car keys?
Yes, key cover is available as an add-on. It typically covers replacement and reprogramming costs, with limits often between £100 and £2,500.
Do I need legal expenses cover?
Not always. Many bank accounts and credit cards offer legal assistance. Check these first before buying it as a car insurance add-on.
What if my car is written off?
Your standard comprehensive policy will pay out the car’s market value. Add-ons like GAP insurance cover the difference between this payout and what you owe on finance.
Can I add a dashcam to my insurance?
While not a direct add-on, some insurers offer discounts for dashcam users. Footage can be vital evidence in claims, as about half of users have used it.

Sources and Further Reading

How Mobile Repair Service Coverage Benefits Your Car Insurance — This article explores how mobile repair services can impact your insurance claims and policy choices.

Understanding the Benefits of Multi-Policy Car Insurance in the UK — Learn how bundling your car insurance with other policies might save you money.

The car add-ons worth paying for, and the ones you can skip. SlashGear, 2023.

The car insurance add-ons worth paying for – and the ones you can skip. Which?, 2024.

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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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