Car insurance masterclass - Breakdown cover explained

Many motorists believe breakdown cover is a safer, cheaper and easier option than trying to repair a broken down car themselves.

In fact the AA says it responds to about 20,000 calls for breakdown recovery services every day during the winter months.

The biggest drawback to this approach is that it is yet another annual expenditure, further increasing the running costs of your vehicle.

However, breakdown cover may not be as expensive as you think, and the level of cover varies so you can pick a policy to suit your needs and budget.

You can limit the amount you spend by choosing basic breakdown insurance, while those who prefer a premium service can pay for a policy that includes features such as European cover and home start.

What types of breakdown cover are there?
There are two types of breakdown cover to choose from; vehicle and personal.

Vehicle cover entitles you to assistance in the event of a specific vehicle breaking down, regardless of who is driving it at the time.

Personal cover, on the other hand, means the breakdown service will respond to your call whether you are the driver or a passenger in any vehicle.

Some breakdown cover providers now allow personal cover to be bought for more than one person on the same policy.

Vehicle breakdown cover is the cheaper option because less protection is afforded to the policyholder.

However, it might be worth paying more for personal cover if you drive more than one vehicle regularly.

What is covered by breakdown insurance?
The cheapest and most basic level of cover is called ‘Roadside' and provides you with breakdown patrol assistance should you break down at the side of the road.

Cover of this kind can cost just £20 or even less a year. However, if your vehicle cannot be repaired, the patrol will only tow it to the nearest garage, where the cost of any replacement parts will not be covered.

The second option is ‘National' or ‘Recovery'. This includes the services provided above plus transport for you, your passengers and your vehicle to a destination of your choice.

You then have ‘Home start', which offers the additional service of sending a patrol to your home to make repairs should your car refuse to start (if you don't have home start, many policies won't cover you if you breakdown within a mile of where you live).

At the top of the scale is Onward Travel, which is the most complete package available and also covers the costs of any unexpected accommodation and car hire required as a result of a breakdown.

However, this level of cover generally costs more than £100 a year.

What about European breakdown cover?
Breaking down while in Europe can be an incredibly expensive affair; and if you are not fluent in the local language, it can be a very frustrating, too.

If you are planning on driving in Europe, you may well be wise to buy European breakdown cover as a result.

This can generally be bought for a time that corresponds with your trip, or included as a standard feature lasting for the full 12 months of the policy.

If you are just popping over to France for one day, for example, you can get European breakdown cover from the AA for £4.39.

Are some providers better than others?
There are a number of points that you need to consider when choosing the breakdown insurance package that best suits you.

You may want to investigate the membership benefits available through the individual providers, many of which offer introductory deals such as half-price MoTs to tempt new customers.

Other factors to bear in mind include whether the company enlists the services of local garages to attend to members, or has its own dedicated patrols, and whether you will be limited in the number of times you can call it out within a 12-month period.

Any other cost-cutting tips?
Some insurance providers will offer cheaper renewal deals to existing customers who have not made a call out during the previous 12 months, so it is worth checking when your cover comes up for renewal.

Either way, don't just accept the renewal quote you are offered without comparing it with other deals.

Whether you are a car, van or motorcycle owner, MoneySupermarket.com can help you find the best value option for you.

This article has been researched and written by whatcar.com's car insurance partner, MoneySupermarket