Why switching breakdown providers can save you money

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By Mark Mitchell
Know Your Money Editor

Savvy consumers could be saving money on their car breakdown cover, while many more may be unnecessarily paying over the odds to ensure that their car stays on the road.

Driving at this time of year can prove to be a hazardous affair and the risk of breaking down could well have increased for many motorists thanks to the recent cold snap of weather that left much of the country freezing.

Therefore, breakdown cover could be argued to be an essential purchase but it need not be one that hits your wallet where it hurts.

Are you paying over the odds?

Motorists with breakdown cover may or may not be aware that renewal charges from their provider can be far greater than the cost being paid to the company by new customers for an identical policy.

It is common practice for recovery firms to automatically renew a policy that you have taken out by debiting a customers card.

Therefore, people who choose to accept the charges they receive could be paying out for expensive cover.

However, many consumers may wish to take action and make an effort to save themselves money. This could be done through an old-fashioned haggle - why not ask your provider to receive a lower rate or to match that offered to new customers?

After all, if they refuse you can tell them that you wish to cancel and switch to a potentially better deal elsewhere.

One customer Carl Young, from Shropshire, told Moneysavingexpert about his experience with breakdown cover renewal.

Mr Young received a £232 renewal quote from the AA for his full comprehensive membership, but new customers could receive exactly the same service for £160.

The civil servant called the company asking it to offer him the £160 price and it agreed to do so. However, he has decided to switch to an RAC policy for a similar price.

He said: "I find it incredible an organisation like the AA penalises customer loyalty by charging me, an existing customer, £72 for automatically renewing cover."

Customers who choose to buy their cover through a cashback site can also get almost some money back.

An AA spokesman told the consumer site: "Existing customers do not get a premium added to their renewal costs but we do occasionally offer discounted introductory offers."

Breakdown cover could save you from hassle

Every driver should ensure that their car is as well prepared as possible before settting off on a journey, but of course the unexpected can still happen. With this in mind, drivers may wish to ensure that the effects of any unexpected events are minimised.

Steve Sweeney, head of motor insurance at moneysupermarket.com, said: "It is worth remembering that no matter how well you look after your car and how carefully you drive, you cannot guarantee you will never break down. Drivers should ensure they are prepared for this and also be aware of other, possibly less responsible drivers around them."

He added that comprehensive motor breakdown cover is essential for motorists to avoid them becoming stranded in the cold and with deals available for such competitive prices, it really is well worth paying for to ensure that they will receive help if their car does fail them.

Companies such as First Call offer comprehensive roadside cover to motorists for an annual cost of £32. It states that this covers the vehicle for call out charges and up to one hours labour charges, at the scene of the breakdown.

This applies to all breakdowns more than one mile away from your home address. Call outs within a mile of your home will be charged an extra £40.

Another option for drivers could be RescueMyCar, which offers a recovery service starting from as little as £29 and has an average response time of less than 40 minutes.

To compare breakdown memberships from the UK's leading providers click here.

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.