One in approximately 24 accidents can be attributed to mechanical failures, highlighting the importance for motorists to protect themselves against these unforeseen events.
“Optional insurance and non-insurance add-ons such as motor warranties, service plans, and tyre and rim protection not only help to prevent accidents related to vehicle faults, but also shield motorists from unexpected vehicle repair costs,” says Nickita Bevan, a representative from Motor Plan Direct.
“Choosing the right add-ons is just as crucial as choosing the right car,” she explains. “Unfortunately, many people base their decisions on cost and convenience. If the monthly premiums seem reasonable, it often appears to be an easy choice. But, when it’s time to make a claim, drivers may face unexpected shortfalls.”
Bevan notes that selecting the right products that provide long-term benefits can be challenging if consumers do not fully understand what they are buying. “It is therefore vital that they comprehend what is available and can make informed decisions, ensuring they have the right amount and type of cover for any situation they may encounter.”
With this in mind, she outlines the top five mistakes that drivers make when buying these add-ons:
1. Accepting the first offer they find:
Drivers who don't research and compare quotes may not know if the products they are buying suit their needs. It’s essential that they shop around to identify options that align with individual requirements and provide optimal value.
2. Not knowing what coverage they need:
Different products protect against different risks. For example, a service plan provides cover for the routine upkeep of a vehicle and typically includes the replacement of oils, spark plugs, and various other items. A motor warranty, on the other hand, covers a vehicle's components in the event of a sudden and unforeseen mechanical breakdown or electrical failure. Understanding these differences is crucial when choosing add-ons.
3. Selecting minimal coverage to keep costs low:
Although opting for basic coverage means paying less in the short term, this could have serious ramifications down the line. Instead of going for the cheapest option, it is prudent to consider the potential expenses associated with vehicle repairs or worse, accidents."
4. Not reading policies properly:
Policy documents can be complex, but it is essential to take the time to read them carefully. Understanding the terminology, terms and conditions, exclusions, and disclaimers before signing ensures that they know exactly what they are covered for in all eventualities.
5. Avoiding extras:
A low insurance premium might be tempting, but it's not worth it if it means forfeiting necessary extra protection. Companies offer supplementary products such as Tyres 4 Life, which covers the periodic replacement of worn-out tyres. While this might seem like an additional expense, it pales in comparison to the costs drivers could ultimately end up paying, with burst tyres causing 2.4% of fatal crashes.
“Having the right products in place leaves drivers feeling safe and confident on the road. Knowing how to approach the buying process and recognising potential pitfalls enables them to secure the best coverage for their budget and achieve peace of mind,” concludes Bevan.
PERSONAL FINANCE