The Cost of Breakdown Insurance: Factors Affecting Premium

• Basic Roadside Assistance

  Basic roadside assistance is typically the most affordable option, covering essential services like minor repairs, tire changes, and towing to a nearby garage. While this option is cost-effective, it may not provide sufficient coverage for those with older vehicles or those who frequently travel long distances. Basic coverage is ideal for newer vehicles and drivers who don’t often drive long distances.

• Comprehensive Coverage

  Comprehensive breakdown insurance covers a wider range of services, including towing to a destination of your choice, onward travel, and sometimes even home start and European coverage. This level of coverage is more expensive but offers greater peace of mind, especially for those with older vehicles or who frequently travel. Comprehensive coverage is a better option for those who want extensive protection against a wide range of issues, though it comes with a higher premium.

• Add-Ons and Extras

  Many breakdown insurance policies offer add-ons, such as coverage for lost keys, misfuelling, or parts and labor. While these extras can provide additional protection, they also increase the cost of your premium. Consider whether these add-ons are necessary based on your vehicle’s age, condition, and your driving habits to avoid paying for unnecessary coverage.

Vehicle Age and Condition

• Older Vehicles

  Older vehicles are more prone to breakdowns, making them riskier for insurers. As a result, breakdown insurance premiums for older cars tend to be higher. Insurers may also limit the coverage available for very old or classic vehicles. Regular maintenance can help keep an older vehicle running smoothly and may result in lower premiums.

• High-Mileage Vehicles

  Vehicles with high mileage are also considered higher risk, as they are more likely to experience mechanical issues. If your vehicle has clocked up a lot of miles, expect to pay more for breakdown insurance. High-mileage drivers should consider comprehensive coverage that includes towing and onward travel options to avoid being stranded far from home.

• Rare or Classic Cars

  Rare or classic cars may require specialist breakdown cover, which is often more expensive due to the difficulty in sourcing parts and the need for specialist repair services. If you own a rare or classic car, choose a policy that specifically caters to the needs of vintage vehicles, even if it comes at a higher cost.

Driving Habits and Frequency

• Long-Distance Driving

  If you frequently drive long distances, especially through rural or remote areas, you’ll need breakdown cover that offers high towing limits and possibly nationwide coverage. This level of coverage is generally more expensive. Long-distance drivers should prioritize comprehensive policies that cover a wide range of scenarios.

• Infrequent Use

  For those who drive infrequently, pay-as-you-go breakdown cover might be a more cost-effective option. This type of policy allows you to pay only when you need assistance, reducing overall costs. Infrequent drivers should weigh the benefits of pay-as-you-go coverage against the potential costs of a full annual policy.

• Urban vs. Rural Driving

  Where you drive also affects your premium. Urban areas may have higher rates due to increased traffic and the likelihood of accidents, while rural areas might see higher premiums due to the distance to the nearest repair services. Tailor your policy to your driving environment to ensure you’re getting the most relevant coverage for your needs.

Geographic Location

• Urban Areas

  Drivers in urban areas may face higher premiums due to the increased likelihood of accidents and breakdowns caused by heavy traffic. Additionally, the cost of services like towing may be higher in cities. Urban drivers should look for policies that offer quick response times and multiple call-outs per year.

• Remote Locations

  If you live or frequently drive in remote areas, breakdown insurance can be more expensive due to the difficulty and cost of reaching these locations. High towing limits are essential for these drivers. Remote drivers should consider policies that include extensive towing options and coverage for remote areas.

• Travel Abroad

  If you frequently travel abroad, particularly within Europe, you’ll need a policy that includes European breakdown cover. This type of coverage is typically more expensive but essential for international travel. European breakdown cover can also include additional services like language translation and local repair coordination.

Provider and Policy Structure

• Established Providers vs. New Entrants

  Established insurance providers often charge higher premiums but offer more reliable service and a wider range of coverage options. New entrants to the market may offer lower premiums to attract customers, but their service levels and coverage options may be less comprehensive. Consider the reputation and reliability of your provider when choosing a policy, as this can impact your experience in the event of a breakdown.

• Annual vs. Monthly Payments

  Paying for your breakdown insurance annually can often save you money compared to monthly payments, which may include additional fees or interest charges. If possible, opt for annual payments to reduce overall costs and avoid extra charges.

• Multi-Vehicle Discounts

  If you have more than one vehicle, look for policies that offer multi-vehicle discounts. Bundling coverage for multiple vehicles can significantly reduce your overall premium. Multi-vehicle discounts are particularly beneficial for families or households with several drivers.

Tips for Reducing Your Breakdown Insurance Costs

• Regular Maintenance

  Keep your vehicle well-maintained to reduce the risk of breakdowns and potentially lower your premium.

• Shop Around

  Compare quotes from multiple providers to find the best deal on breakdown insurance.

• Consider Basic Coverage

  If you have a new or reliable vehicle, basic roadside assistance may be sufficient and more affordable.

• Look for Discounts

  Take advantage of discounts for bundling policies, loyalty programs, or low mileage.

FAQs About Breakdown Insurance Costs

• What is the average cost of breakdown insurance?

  The cost of breakdown insurance varies widely depending on the coverage level, vehicle age, and driving habits. Basic policies may start as low as £30 per year, while comprehensive coverage can cost several hundred pounds annually.

• Can I reduce my premium by increasing my excess?

  Yes, some providers allow you to reduce your premium by opting for a higher excess. However, be sure you can afford to pay the excess if you need to make a claim.

• Are there any hidden fees in breakdown insurance policies?

  Some policies may include hidden fees, such as charges for additional call-outs or services not included in your basic cover. Always read the fine print before purchasing a policy.