Insurance

Car Insurance Add-Ons – Are They Worth The Money?

Whether you’re buying your first car or you’re trading in an old banger, getting a new car can be a stressful scenario. This can be made even more stressful when the dealer starts asking about car insurance add-ons that you’re vaguely aware of, but not totally sure about what they do.

To help you combat driving away with potentially costly unnecessary add-ons, here’s a list of some of the car insurance add-ons you should and shouldn’t consider.

GAP insurance

This is one of the most common insurance types to be offered, and yet many don’t completely understand what it is. To put it simply, should you have an accident where your car is written off, your insurer will only pay out what the car is currently worth. Invariably, you will be left with a shortfall from the initial purchase. GAP insurance will cover this shortfall.

Pros Of Gap Insurance

  • GAP insurance provides reassurance should the worst happen
  • Useful for people who need a car, and should they have an accident would be put into financial difficulty if there was a shortfall

Cons Of Gap Insurance

Ultimately when it comes to GAP insurance, you should consider your driving history and your finances.

Alloy Wheel And Tyre Protection

Wheel and tyre protection will cover any damage to the named items for a set duration (normally between one and three years), and the amount covered is set to a predetermined amount per wheel claim. Whilst the cost of refurbishing an alloy wheel is usually far less than the excess, alloy wheel insurance is designed specifically to help keep your alloy wheels looking like new.

Pros Of Alloy Wheel And Tyre Protection

  • Wheel and tyre protection is ideal if you’re more exposed to potential wheel damage. This could be because of local roads, or because of the type of car you drive. For example, BMW’s are often fitted with run-flat tyres that cost significantly more than standard tyres.

Cons Of Alloy Wheel And Tyre Protection

  • Check the cover doesn’t have a high excess for each claim.

As our potholes become deeper and sharper and our streets more congested, combined with bigger wheels and smaller tyres, then it might be worth considering alloy wheel insurance with ALA.

Extended Warranty Cover

Every car from a dealer should come with a warranty as standard, but you should be offered the option to extend that period or increase the level of cover.

Pros Of Extended Warranty Cover

  • You have peace of mind that should something go wrong, you are covered.
  • If you would struggle to pay for an expensive repair to a vehicle without extra cover

Cons Of Extended Warranty Cover

  • You may end up spending more on the warranty cover than the actual cost of a repair.

Warranties come in many different forms and lengths, so be sure you understand the level of cover you’re being offered.

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