Pay and claim is generally regarded as a budget method of purchasing breakdown cover. Is it an option you should consider?
Pay and claim is usually the cheapest type of breakdown cover available to drivers and it's something of a niche policy.
As with a standard policy, with pay and claim you pay an annual fee up front, but the cover you receive is likely to have certain distinct characteristics.
Firstly, the breakdown company will not operate its own patrols.
Instead, it will contract its services out to a local recovery service.
Secondly, and perhaps most significantly, you'll be required to pay the local service when you call them out and then reclaim the money by sending the receipts to your breakdown provider.
As opposed to standard breakdown insurance, pay and claim cover is usually cheaper and so can seem attractive to drivers on a smaller budget.
If your car is reliable, pay and claim cover could be a good option.
If you're faced with the cost of transporting your vehicle home from a considerable distance and you don't have the money to pay, you might be stranded with no cover and no way of getting home
It's hard to know when mechanical problems will strike, though, and if your car's old or has a history of unreliability, standard cover and its additional features may be a more attractive choice.
Before making your mind up, consider how you use your car.
Do you travel long distances for work or go on regular holidays to Europe? Or, do you use your car infrequently and only locally?
Think about your habits as a driver, your mechanical skills and the behaviour of your vehicle before deciding on a certain type of cover.
"If you go for a pay and claim breakdown policy it's important to consider your ability to pay the bill in the first place," said motor insurance expert Scott Kelly.
"Can you ensure that you'll have enough cash, or capacity on your credit card?
"If you're faced with the cost of transporting your vehicle home from a considerable distance and you don't have the money to pay, you might be stranded with no cover and no way of getting home."
For pay and claim to work for you, it's important to plan ahead in case an emergency presents itself.
A credit card put aside could be the answer, but for this to work you'll need to be disciplined.
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