07/08/2006
MoT Protection Insurance: Is It a Worthwhile Investment or a Costly Gamble?
In the realm of automotive care, we're often presented with a smorgasbord of add-on insurance policies, each promising to safeguard us against unexpected expenses. From extended warranties on appliances to specialised cover for our gadgets, the market is saturated with options designed to offer peace of mind. One such policy that frequently pops up, particularly for owners of used vehicles, is MoT protection insurance. These plans typically advertise the enticing prospect of having your car repaired for free should it fail its mandatory Ministry of Transport (MoT) test. But, as with many things in life, the devil is often in the detail. Is this an essential safety net, or merely another thinly veiled revenue stream for insurers? Let's delve deeper to understand what you're really getting for your money.
Understanding MoT Protection Insurance
At its core, MoT protection insurance is designed to cover the costs associated with repairs that are necessary for a vehicle to pass its annual MoT test. It's often presented as an attractive add-on when purchasing a used car, providing a layer of reassurance for the buyer. The idea is that if your newly acquired vehicle fails its first MoT, the insurance policy will foot the bill for the required fixes. However, when considering a standalone MoT protection policy, it's crucial to scrutinise the terms and conditions to ascertain the true value proposition.
The Allianz Example: A Closer Look
To illustrate the potential pitfalls, let's consider an example. A policy offered by Allianz, for instance, might cost around £19.99 per month, equating to a substantial £239.88 per year. For this monthly outlay, the coverage might extend to components such as windscreen wipers, power steering, shock absorbers, seatbelts, and lights. However, a significant caveat is that this policy explicitly excludes claims for items like new bulbs, tyres, glass, or bodywork. This exclusion is particularly noteworthy when you consider the common reasons for MoT failures.
Common MoT Failures: What's Really Covered?
The Driver and Vehicle Standards Agency (DVSA) provides valuable data on the most frequent causes of MoT failures. In the 2012/13 period, a staggering 18.7% of failures were attributed to lighting and signalling issues. Anecdotal evidence and common experience suggest that these failures are often due to simple, inexpensive components like blown bulbs. Crucially, as highlighted by the Allianz example, bulbs are frequently excluded from MoT protection policies. Furthermore, the DVSA data indicates that tyres and driver's view of the road (which includes glass) account for an additional 7.7% and 6.9% of failures, respectively. These are also common exclusions in many protection plans.
The Cost-Benefit Analysis: Does it Add Up?
To truly assess the value of MoT protection insurance, we need to conduct a simple cost-benefit analysis. Data from Halfords Autocentres, which tested 475,000 cars over a 12-month period, revealed that 102,500 of those vehicles failed their MoT. The average cost to rectify these failures and get the car through the test was a mere £91.30. While this figure is well below the £750 payout limit often advertised by insurers, it paints a stark picture. If the average repair cost is £91.30 annually, that works out to approximately £7.61 per month. Now, compare this to the £19.99 monthly premium for the Allianz policy. The maths simply doesn't support the expenditure for the average driver. You're paying more than double the average repair cost for coverage that likely won't even cover the most common failure points.
The Power of Proactive Maintenance
Given the cost and the limitations of MoT protection insurance, a more sensible and cost-effective approach is to conduct a pre-MoT inspection yourself. A month or so before your vehicle's scheduled test, take a little time to visually inspect key components. Pay close attention to your tyres for wear and tear, check that all your lights are functioning correctly (including brake lights and indicators), ensure your windscreen wipers are in good condition and that your windscreen is free from chips or cracks. By performing these simple checks, you can identify potential issues that might lead to an MoT failure. You can then address these problems at your own pace and potentially at a much lower cost than relying on an insurance policy that may not even cover them.
Comparing MoT Protection Policies
It's also worth noting the significant variation in pricing and coverage across different insurers. While the Allianz example highlights a higher-end premium, a cursory search online can reveal insurers offering MoT protection as an annual add-on for as little as £39.96. This stark difference in cost further underscores the importance of thorough research. However, even at the lower end, the question remains: does the coverage offered justify the expense when compared to the actual likelihood and cost of common MoT failures?
| Failure Category | Approximate Percentage of Failures (DVSA Data) | Likely Repair Cost (Estimate) | Likelihood of MoT Protection Cover |
|---|---|---|---|
| Lighting, Signalling & Number Plates | 18.7% | £10 - £50 (Bulb replacement) | Low (Bulbs often excluded) |
| Tyres | 7.7% | £50 - £200+ (Tyre replacement) | Low (Tyres often excluded) |
| Driver's View of the Road (Glass) | 6.9% | £50 - £150 (Windscreen repair/replacement) | Low (Glass often excluded) |
| Brakes | N/A (High Impact) | £100 - £500+ (Brake pad/disc replacement) | Medium (May be covered, depending on policy) |
| Suspension | N/A (High Impact) | £150 - £400+ (Shock absorber/spring replacement) | Medium (May be covered, depending on policy) |
Note: Percentage data is based on DVSA 2012/13 figures. Repair costs are estimates and can vary significantly based on vehicle make, model, and parts required.
Frequently Asked Questions (FAQs)
What exactly is an MoT test?
The MoT (Ministry of Transport) test is an annual test of vehicle safety, roadworthiness, and exhaust emissions. It's a legal requirement for vehicles that are three years old or older.
What are the most common reasons for an MoT failure?
The most frequent reasons include issues with lighting and signalling, tyres, brakes, suspension, and the driver's view of the road (e.g., damaged windscreen).
Does MoT protection insurance cover all MoT failures?
No, most MoT protection policies have significant exclusions. Common exclusions include wear-and-tear items like bulbs, tyres, and glass, as well as routine maintenance items.
Is MoT protection insurance worth the money?
For most drivers, especially those with newer or well-maintained vehicles, standalone MoT protection insurance is unlikely to be cost-effective. The premiums often exceed the average cost of common MoT repairs, and many critical failure points are excluded.
What's a better alternative to MoT protection insurance?
A proactive approach is best. Conduct a thorough pre-MoT inspection of your vehicle, focusing on common failure areas like lights, tyres, and wipers. Addressing minor issues yourself before the test can save you money and the hassle of relying on potentially inadequate insurance.
Conclusion: A Calculated Decision
Ultimately, the decision to purchase MoT protection insurance is a personal one, but it should be an informed one. The evidence suggests that for the average motorist, the cost of these policies often outweighs the potential benefits, especially when considering the common failure points and the significant exclusions typically found in the small print. By understanding what constitutes an MoT failure and by taking a proactive approach to vehicle maintenance, you can likely save a considerable amount of money and ensure your vehicle passes its test without the need for costly, and often insufficient, insurance cover. It’s about making smart financial choices for your vehicle, and in this instance, foregoing the protection plan and investing in a little DIY diligence appears to be the most prudent path.
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