Type of Breakdown Cover

There are two payment methods available for breakdown cover; up front or on call out. Let's take a look at the two methods to see the difference between the two payment schemes...

Pay Up Front

Paying up front means the car breakdown policy provider will charge you an annual fee for your cover and any call outs you make during the policy are paid for by the annual fee. Parts, labour and other charges are sometimes included in the fee but it depends on your breakdown cover so be sure to check your policy terms to see exactly what is included. Paying up front can result in discounted breakdown cover and is also quite hassle free as you don't need to worry about paying any charges while also worrying about a broken down car. There are some advantages to paying on call outs however.

Many companies state there are no call out charges on their policies however there is usually a limit to the number of free call outs you can make in a year and then a charge is applied to any calls that exceed this limit. Some companies also offer a no calls discount or bonus which could see a renewed policy drop in price if you don't use any of your free call outs.

Pay on Call Out

By paying on call out you can sometimes save some money since you will only pay for the service when it's needed. If you have a relatively new, reliable car which you know won't break down regularly then paying on call out could work out cheaper than an annual fee.

Paying on call out is usually only offered for the cheapest breakdown cover; with this cover the breakdown company will often send out a local breakdown service rather than sending one of their own breakdown patrol vehicles. You pay the local service and then forward your receipts to the breakdown company to reclaim your expenses. If you cannot pay the charges in cash some services will take credit/debit cards or send out an invoice.