Why having no breakdown cover could freeze your finances

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By Rachel Jones
Know Your Money Editor

A cold snap is sweeping across the UK, with temperatures dropping during the night to as low as -12 degrees Celsius. Drivers are waking up in the morning to find frozen cars and perilous conditions, while councils are sending out their gritters in an effort to keep the ice at bay. But while the festive financial hangover may still be a headache for cash-strapped consumers, some individuals may start to consider cutting back on their motor insurance or breakdown cover in a bid to save extra pounds. However, not only is this an unwise move because of the potential consequences that could arrive from a car crash - in particular a dent in the finances of the other driver - but also Britons who are dodging their responsibilities could well find themselves out of pocket too. Vehicle damage as a result of the cold weather - either because of a bump or car breakdowns - could be made less painful if an insurer is on hand to cover the costs.

But what risks do drivers face by not splashing their cash on a suitable motor insurance policy or breakdown cover?

Rooted to the spot on January 5th

Did you manage to get your car off the drive on Monday (January 5th)? According to the ETA, that day was expected to be the biggest one for breakdowns as people returned to their vehicles after the festive holiday. Three million motorists were predicted to be stranded because of a combination of freezing weather and cost cutting, the organisation claimed. While flat batteries were one consequence of the engine not being heated up over the Christmas period, people without breakdown cover also woke up to flat finances.

"It is feared that the number of stranded motorists this year may be higher because people are trying to save money by cutting back on what they regard as non-essential services - the equivalent of three million drivers are prepared to go without breakdown cover in order to reduce their motoring costs," the report notes.

Going without such protection is a "false economy" - think how much it could cost to call out a company such as the AA or the RAC if you are not covered for such benefits. Shopping around could find people bagging bargain breakdown deals, the ETA concludes.

A small scrape can leave a big dent

The newspapers have been full of stories about people crashing on the ice and some have had fatal consequences. But while the majority of incidents involve near-misses or minor scrapes, what appears to be a small amount of damage can add up when it comes to getting it repaired.

However, drivers in a rush to beat the traffic, which could be heavier because of the cold weather, are using methods to quickly de-ice their cars in the mornings which are not recommended by professionals. Research by Nationwide Autocentre found that shoes and credit cards are just some of the items that people use to scrape ice off their windscreens, rather than waiting for their car heaters to do the work. Indeed, while 27 per cent of drivers admit that they use a credit card, 12 per cent use a CD case and three per cent use their shoes.

Commenting on the findings, Duncan Wilkes, managing director of Nationwide Autocentre, says: "With belts firmly tightened as the credit crunch continues, the last thing motorists need to worry about is spending an extra £100 to have a windscreen replaced."

Furthermore, he states that while people might not be able to use their credit cards for spending because of the current recession, they should not double them up as de-icing tools.

The key to getting your car stolen

Greater Manchester Police has urged drivers to not leave their keys in the ignition of their car while they are defrosting it. Chief inspector Chris Gloster of Greater Manchester Police's Traffic Network Services says that a number of incidents have been reported by people who have left their engines running in an unattended vehicle. He warns that insurance companies may not pay out to people who have their vehicles stolen in such circumstances. And remember, not having a policy at all is not only illegal but will leave individuals forking out for a new car - not a help during the continuing credit crunch.

So for drivers who do not want to start the new year with a hefty bill for repairs, crash claims and stolen vehicles, shopping around for the best insurance and breakdown deals could land people with the cheapest but best cover for them. And individuals considering cutting back on their premiums may find that doing so costs them further down the line.

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