The cost of breaking down

With 'rogue petrol' coming off some forecourts and causing cars to splutter and stop, motorists are well advised to think about getting car breakdown cover. This market used to be dominated by big names such as the AA and RAC but now drivers have a choice from dozens of, often much cheaper, suppliers. However the old adage 'you get what you pay for' can turn out to be true when you look at the level of cover some providers offer.

Growing market but with pitfalls

New entrant rescuemycar.com offers breakdown cover from just £31 a year. However if you check the small print, the policy is littered with exclusions. The main one is that every call-out is subject to a £40 excess. So if you have to call out the company's patrols just once in a year, the policy stops being a best buy and becomes very average. Call it out three or more times and it becomes the most expensive policy around. Rescuemycar.com also does not cover parts needed to fix your vehicle, running out of petrol or more than six call-outs each year.

Rival, First Call, offers roadside cover for £32 a year and charges a £40 fee if you call out a patrol to your home address. It also has limits on the number of call-outs per year and how far it will take your car to be fixed at a garage. Also the policy just covers one vehicle unlike services such as the AA which covers members travelling as passengers in other peoples cars.

Pay and claim

If you're looking for a cheap policy and don't mind paying for repairs at the roadside and recovering the cost later, then a pay-and-claim policy could be a good option. Pay-and-claim provider AutoAid currently offers a policy for £32 a year and the person is the member, rather than the car. under this scheme, you will be eligible for roadside assistance, vehicle recovery, home assistance and emergency travel or accommodation.

It also includes free cover for a spouse. You pay the bill at the roadside, send the receipt to AutoAid and it reimburses you within 10 days. Pay-and-claim services tend to be cheaper but if you forget to reclaim the cash, you will end up out of pocket. Also you need to be aware that you could personally take a big financial hit should you break down. This means you could be out of pocket by several hundreds of pounds while you wait for the money to make its way to your bank account via your insurer.

09 March 2007 © Moneyextra.com

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Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.