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How to save money on roadside assistance and avoid being ripped off

Who would you call first if you were stranded with your car in a remote area?

Who would you call first if you were stranded with your car in a remote area? Photo: Getty

One in four Australian motorists is paying for roadside assistance cover – collectively spending $400 million a year – but failing to use the service in times of need.

One quarter of Australians would rather phone a friend than call for professional assistance, despite almost 80 per cent paying an average annual fee of $130  to secure roadside cover, according to a Finder survey.

The research also found that three million Australians would refuse to call for roadside assistance even if their car broke down.

But not many people were keen on the idea of trying to fix the car themselves – just 5 per cent of men and 1 per cent of women.

Roadside assistance ‘usually free’

Bessie Hassan, a car insurance expert at Finder, said the avoidance of calling roadside assistance as a first point of contact may be due to misconceptions about cost and potential wait times.

roadside-assistance

Wait times could depend on your roadside provider’s network coverage. Photo: Getty

NSW-based provider NRMA told The New Daily its average wait time is about 40 minutes.

“What many people don’t realise is that if you’re already paying for roadside assistance, calling them to jump-start or fix your car is usually completely free,” Ms Hassan said.

“However there may be some circumstances in which you’ll be charged a further amount, for example, if they replace a battery.”

The most common reasons Australians request roadside assistance are flat batteries, breakdowns requiring towing, advice-only calls, tyre problems, lockouts and running out of fuel, according to Compare The Market.

Are you doubling up on roadside cover?

Leading insurance expert Allan Manning told The New Daily that many Australians may be inadvertently doubling up – or even tripling up – on roadside cover.

He said that while roadside packages have traditionally been provided by automobile clubs, more recently they are also offered by insurance companies and even car dealerships.

roadside-flat-tyre

Most policies offer a ‘flat tyre service’. Photo: Getty

“A lot of people end up doubling up and find that they’ve got roadside assistance through an automobile club, another with their car dealer and possibly even a third lot of cover with their insurance policy,” he said.

“That seems to me like it’s a complete waste of money.

“These packages are often sold as an incentive for discounts on insurance packages or as car add-on features, sometimes initially offered for free.”

Unexpected additional fees to watch out for

Abigail Koch, a spokeswoman for comparison website Compare The Market, said there are a number of factors that can restrict your cover, so it is worth checking the fine print.

  • Flat Batteries: Almost half of call-outs are due to flat car batteries. This happens more often in winter because the cold weather puts added strain on battery life. Most roadside providers will charge you for a battery replacement if needed
  • Towing: About one quarter of all breakdowns cannot be fixed on the side of the road and the car will need to be towed. Each policy will have limits on how often and how far it will tow your car. Ms Koch said to be aware that not all policies cover the cost of transporting you alongside the car
  • Advice only: In some circumstances, the roadside operator may be able to solve the problem over the phone
  • Spare tyres: About 10 per cent of callouts are for help fitting spare tyres or reinflating flat tyres. Most policies offer a ‘flat tyre service’, but your spare tyre needs to be fully inflated and in good condition to avoid costs of being towed to the nearest tyre repair centre
  • Lockouts: If your keys are lost, stolen or locked in the car, most roadside policies will assist with entry to the vehicle or to organise transport to fetch a spare key, but typically this relies on the ability to supply driver identification
  • Running out of fuel: Pushing your luck too far once the petrol light comes on may require towing but some policies will supply you enough fuel to reach the nearest petrol station
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