Pay as you go better for boilers

Boiler owners could be paying thousands of pounds over the odds for cover they don’t need.

Research reveals nine in 10 people would be better off paying as they go for repairs and services.

A new study by consumer watchdog Which? found just six per cent of boiler owners would have benefited financially in the event of a repair if they had boiler cover, with the overwhelming majority being better off paying when required for repairs and servicing.

Almost half of people surveyed needed to call out a boiler repair person in the previous five years, with those without cover paying £107 per repair on average.

With the average cost for an annual service being £80, the combined cost of paying when required was still £101 cheaper than the average annual boiler cover premium of £288.

It was also estimated that even if customers were unlucky enough to need a typical boiler repair every year for 10 years, they would still be more than £2,000 better off than if they took out annual cover.

The survey also found almost a quarter of people who pay for boiler cover are still covered by the warranty. And if home emergency cover is included in a home insurance policy, either as standard or an optional extra, customers could be doubling up should they also have separate boiler cover.

Which? said: “Our analysis shows that boiler cover is rarely worth the money – with excessive premiums costing customers hundreds if not thousands of pounds more than if they paid for repairs and servicing themselves.

“If you have boiler cover for peace of mind, there are simple steps you can take to get a better deal. Don’t pay for cover you don’t need and check you’re not at risk of having to pay extra for unexpected exclusions such as servicing.”