Avoiding the breakdown cover renewal hike

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With concerns about the overall cost of motoring continuing to grow, many Brits may be keeping a close eye on the amount they spend keeping their vehicle on the road.

But it is important not to overlook how much you are spending on taking your vehicle off the road in the event of a breakdown, the Guardian reports.

Watch that renewal rate

When it comes to renewing annual breakdown cover, many people may have seen their premiums jump since the previous year, often with little explanation. And for those that do feel they are paying over the odds, it can be worthwhile checking the internet for a better deal.

Welsh motorist Peter Ludlow told the paper that he was dismayed to find that the cost of his AA breakdown cover had shot up to £186.50, compared with £136 last year. Before agreeing to another 12 months of cover, he went online to check out the motoring group's introductory offers and found that a new customer could get the same protection for £120.

However, the company was reluctant to offer him the same deal but said that he did qualify for a loyalty discount which would bring his policy price down to a little over £130. And while this demonstrates the importance of haggling over renewal costs, Mr Ludlow went further and cancelled his policy, switching instead to the RAC which afforded him the same level of cover for £49, with a little help from his Tesco Clubcard.

Mr Ludlow said he could not understand the logic of offering uncompetitive rates to existing customers when switching was so easy.

"As more and more people check the prices on the web and realise how much more they would pay if they just automatically renewed, they would have to deal with more queries, taking up staff time, or more people will do as I did and leave," he commented.

Click your way to a cheaper policy

For those that are keen to keep their motoring costs down as the gloomy economic conditions persist, the Guardian recommends comparing prices online before committing to a policy renewal, as some hefty savings can be made by doing so.

The cheapest cover found by the paper was offered by the Green Insurance Company, a small ethical group which offers basic protection for £21.95 a year. It promises a typical callout time of 40 minutes and even offers a £10 refund if the vehicle is still on the roadside after an hour.

The group also came out on top for prices on more robust policies, with a package offering home help, provision for alternative travel and car hire and hotel accommodation available for £34.95. The same level of protection from the AA would cost £135.38, while the RAC would charge £134.63.

Meanwhile, Rescue My Car was also found to offer an innovative pricing policy which takes into account the age and make of the vehicle and the driver's age in order to calculate a premium that reflects how likely it is that the car will break down.

Check cover before heading off on holiday

For those who are planning a driving holiday this summer, it may be worth checking how far roadside assistance stretches overseas.

The paper points out that while additional foreign breakdown cover is available, it is also important to check the terms of your car insurance deal as some policies include automatic overseas breakdown protection, which could prove invaluable in keeping motoring costs down.

Meanwhile, the AA has warned that motorists should also keep an eye on the price of fuel in the coming months as there is a chance that the UK is going to be hit by another wave of seasonal price hikes at the pump.

Commenting recently, AA spokesperson Luke Bosdet warned that investors have been pushing the price of oil up and are risking another summer of "petrol madness", similar to that seen in 2008, when prices at the pump soared throughout the UK and the rest of Europe, sparking protests and anger among consumers and businesses alike.

The Telegraph warned last month that average petrol prices are already creeping towards £1 a litre and are likely to climb higher. It may be worth keeping such costs in mind if you are budgeting for a trip away.

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