Consumer Corner: What do you need from car insurance add-ons?

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Revolut, the online bank, recently announced that it is going to offer car insurance in the Irish market. Given that car insurance can be a costly affair this surely has to be a welcome move. Competition in any sector can only be a good thing for consumers and generally leads to lower prices.

The Central Bank said that the average price of a car insurance policy in Ireland is €578. However, the good news is that this is €135 less than it was in 2017. The Central Bank also said that motor insurance premiums fell by 5% in the first half of last year compared to 2021.

We all know the usual tips with regard to shopping around for car insurance. It’s well known that we should always ask for a better deal when it comes to renewing the policy each year.

However, there are many other things to watch out for when securing your car insurance, especially in relation to add-ons. There are many add-ons that your company may offer you and also many you should check are included in your policy.

Jonathan Hehir, managing director of InsureMyCars.ie, says that ultimately, choosing whether or not you need car insurance extras depends on your individual circumstances, budget, and risk tolerance. Also, he notes that the specific add-ons and their availability may vary depending on the insurance provider.

“It’s important to review different insurance providers and policies to compare coverage options and the long-term financial implications they could mean to you,” he said.

My Hehir pointed out that car insurance add-ons provide an additional layer of coverage and benefits beyond the basic insurance policy to help tailor insurance to suit every customer’s needs.

“The add-ons on offer will often depend on the type of standard policy you have. With so many extras to choose from, it can be difficult to know where to begin to find the best option for you.”

Firstly, it can be difficult for motorists to navigate the variety of extras available and the benefits they bring so having some base information before agreeing to, and paying for, anything additional is important.

One of the most popular add-ons is when you get cover so that you can drive someone else's car. Mr Hehir said this can be a really useful add-on if you unexpectedly have to drive someone else’s car: “Cover is usually restricted to third-party only, they usually have to be owned by someone else, not a garage, insured elsewhere and sometimes there are restrictions in terms of value and engine size.”

He does point out however that adding this type of add-on to your car insurance premium can be costly and it may not be available for certain people such as young drivers.

Also, we hear a lot about ‘windscreen cover’ in adverts and this cover will cover the cost of repairing or replacing a vehicle’s windscreen. It is often available to motorists on comprehensive policies and can be claimed without losing a no-claims bonus.

This cover can be useful as repairing or replacing a windscreen is expensive, particularly if the car has a special glazing or custom features. However, it is not expensive but always worth checking if it is included in the policy.

“Windscreen cover is often swift and convenient, with a streamlined claims process in place that allows you to get your windscreen repaired quickly, so you can get back to normality,” said Mr Hehir.

There’s always the fear of breaking down and what you should do in that situation. Many insurance companies will offer ‘Breakdown Assistance’ which provides immediate assistance in the event that your vehicle breaks down. Cover such as emergency roadside or home start assistance typically includes services such as jump-starting, towing the vehicle, changing a flat tyre, or even providing fuel if you run out.

Mr Hehir said this is usually included free or at a relatively low additional cost on most policies.

“It assures that you won’t be left stranded on the roadside and ensures you get back to your journey as quickly as possible. Typically, breakdown assistance support is available around the clock, on weekends and bank holidays which means you can access help at any time, regardless of where or when your vehicle breaks down.”

However, while useful, some breakdown assistance policies have limitations on the area they cover. If your vehicle breaks down outside the coverage area, you may not be able to avail of the assistance you need.

“It is always important to check your policy details to ensure you are covered in the areas you plan on travelling to.”

Also another common add-on is protecting your no-claim bonus. This can help you maintain lower insurance premiums and some providers include this free of charge.

“However there is usually a limit on the number of claims you can make while maintaining your no-claims bonus. Often, the limit is set to one claim per policy year. If you exceed the limit of claims, your no-claims bonus may be affected,” Mr Hehir pointed out.