Are chargeable motorcar insurance dietary supplements actually price it? – Gareth Shaw – The Yorkshire Submit

When you buy auto insurance, it can be easy to get overwhelmed by the peace of mind the wide range of paid add-ons purport to offer, says Gareth Shaw.

When buying car insurance, it is easy to get carried away with the security that the wide range of paid add-ons purport to offer. Whether legal expenses insurance, replacement car, key protection – all of this helps to mitigate the blow should something go wrong, but the costs can quickly skyrocket.

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There's excess insurance in that bucket of add-ons, and I can see the appeal.

When you take out insurance, setting a higher deductible – which is your contribution to the cost of a claim – can lower your premiums as your insurer rewards you for making a commitment to pay more for a claim.

The downside to this tactic, however, is that a high deductible can make small repairs uneconomical and larger repairs unaffordable, especially if you have multiple claims to make in a year. This is where excessive protection can help. It will reimburse part or all of the deductible you have to pay when you make a claim. But be careful, there can be tricky terms in the guidelines that can undermine the value.

Our research has shown, for example, that some policies are subject to certain claims, such as B. Windshield repairs, do not pay off.

In addition, you are already paying out for no-claims discount protection. A no claims bonus is a discount on your car insurance to reward you for not making a claim on your policy.

After a year of no claims, you might get 30 percent, and that discount increases for each year that no claims are made. If you have five years of compensation, you can benefit from a 60 to 80 percent discount.

This can be incredibly valuable, but making claims can erode the discounts. This allows the discount to be reduced to the level of previous years. But buying a no claims discount can protect that discount when you need to make a claim.

It's another extra extra that you can buy with your insurance and it prevents a limited number of claims (two or three claims over a three year period is common) from affecting your no claims bonus.

It usually costs around £ 60 a year, and the higher your no-claims bonus, the more it is worth paying for that coverage.

This does not mean that your premiums will go up if you have to claim a claim.

While you protect your rebate, the insurer may price your policy higher in the future because they think you are riskier and more likely to make a claim in the future.

So while you can keep a 60 percent discount on your policy, for example, that discount can be higher.

What really matters is whether you think you can afford to pay the £ 650 deductible to make a claim.

Given that you've built up no-claims bonuses over several years, you are less likely to make a claim and less likely to use excess protection.

And if you choose to pay for both the Excess and No Claims Cover, add £ 100 a year to your car insurance costs when No No Claims are likely to be the most beneficial.

Gareth Shaw is the boss of money at which.co.uk.

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