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The automotive services industry in the UK is worth nearly £14 billion per year (source: just-auto.com) with the breakdown and recovery sector accounting for a significant proportion of this. With nearly 26.2 million licensed cars on UK roads (source: Dept. of Transport), and no sign of the growth trend in the number of vehicles slowing down any, this mature sector still has potential to grow. So, it is clear that the industry is healthy but what should I, as a consumer, be aware of? Do I really need breakdown cover in the first place, and if so what policies are available? In order to answer the question of whether breakdown cover is necessary all one has to do is consider the alternatives, which in a lay-by late on a rainy night can be bleak, time-consuming, and ultimately financially costly. When one considers that garages often charge up to £100 simply for being called out, whilst breakdown cover can cost less than £30 per year (with zero call-out charges), the financial savings alone make breakdown cover worthwhile without even factoring in the peace of mind that cover can provide. As Nigel Charlesworth of Green Flag says, without cover once the call-out charge has been paid "recovery to your home or destination will then be charged per mile...., you can see how the costs mount up". This is especially true if a vehicle is a significant distance from home or abroad. One may also think that if you have a modern car then there is less need for cover. However 50% of all call outs are classified as non-starts resulting from either a flat tyre or battery - a problem that new cars are not immune to. In fact, a recent study entitled ‘Breakdown Britain' conducted by the RAC found the top three causes of breakdown were a flat tyre, and a flat or dead battery. Furthermore, this study also found that one of the top reasons for the rising number of callouts was the increasing complexity of the modern car and its reliance on technologies that the average driver could not fix in the event of a failure. When it is also considered that a breakdown operator is often the first port of call in the event of a minor road traffic accident or locking the keys in a vehicle, it soon becomes clear that breakdown cover can be very useful indeed! Given the need for cover, it is equally important to choose the correct policy and policy provider for your individual needs to ensure you get the policy most suited to your requirements. The four main providers of breakdown cover in the UK are the AA , RAC, More Than, and Green Flag, and all offer similar packages. The cheapest form of cover is usually based upon an individual being covered by the policy, with single vehicle cover slightly more expensive, and joint/family cover more expensive still. Once the decision of what or who to cover has been taken, the decision about the comprehensiveness of the policy has to be made from four main categories: - Roadside: Car breakdown cover is valid provided the vehicle has broken down more than ¼ mile from home. If the car cannot be fixed by the roadside it will be towed to the nearest garage or an alternative destination provided it is no further away.
- Relay/Recovery: The same as Roadside cover plus the additional benefit that if your vehicle cannot be fixed at the roadside, you, your vehicle, and your passengers (usually up to a maximum of 7 or 8 people) will be transported to any mainland UK destination of your choice.
- Homestart: Provides cover at the roadside but also if you breakdown at home or within a ¼ mile of your home. Depending upon the policy provider it may or may not include the benefits of Recovery.
- Relay/Recovery Plus: Provides all the benefits of a relay/recovery policy plus home cover but, in the event of quick repair not being an option, offers overnight accommodation, or the use of a hire car for up to 48 or 72 hours (depending upon the provider), or ‘reasonable' onward travels expenses.
Typically the cheapest option is simple roadside cover with prices ranging from £30 to £40 per year for single vehicle cover, rising to over £100 per year for the top level of cover. However, it should be remembered that approximately half of all breakdown callouts are due to the car not starting, and that the most likely breakdown is at home at 8.34am on a Monday morning (source: Breakdown Britain). Thus, it may be prudent to also take out homestart cover unless you fancy pushing your car a quarter-mile from home every time there is a problem!
Staff editor, Breakdown Section, March 2007 |
