Parking apps now try to flog you insurance - but would it actually cover you?
Drivers forced to use apps are now pushed cover for scrapes and thefts
Motorists are being targeted with a new wave of unnecessary extras offered by car parking apps – including a 'rip-off' insurance policy that can double the cost of your parking.
Drivers are increasingly being forced to use a smartphone app to pay to park their car on the street or in a car park, as meters and ticket machines are rapidly withdrawn.
There are now around 30 such smartphone apps available. The apps typically work across multiple car parks and other areas where you can park your car in the UK.
But some of these are now presenting drivers with additional offers aimed at getting them to spend more on top of a car park space - charging for everything from paying to receive texts ten minutes before your parking permit expires to car contents insurance and even online counselling services.
Drivers are increasingly being forced to use their phone to leave their car on the street or in a car park, as meters and ticket machines are rapidly withdrawn
One of the most popular parking apps, PayByPhone, has recently started offering an 'Add Insurance' option.
When motorists go to pay for their parking through the app, they are presented with an option to 'ensure peace of mind' with insurance, which only lasts for the duration of their stay in the parking spot.
'Protect your personal items. No excess. Keep your no claims discount,' the advert says, to entice drivers.
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For example, if you are paying £4.20 for a 12-hour full day at a car park in Bishop's Stortford, Hertfordshire, you are presented with an 'Add Insurance' button encouraging you to double the price paid to £8.40.
Jeff Salmon, an insurance loss assessor for Salmon Assessors, says: 'They are using a scare tactic to frighten motorists into a cover they do not need.
'Because you are usually only able to claim on one insurance policy, this car contents insurance is a total waste of money – you should already be fully covered on your home or motor policy.'
Drivers may be drawn into paying for the policy over fears that cover is necessary as they have parked in a high-crime area or believe that they do not already have protection.
The PayByPhone deal is being offered by insurer Chubb and for limited use.
It covers 'theft of your personal items' and 'damage to your car side or rear window(s) up to a maximum of £2,000 per claim' for the duration of your parking session.
However, it does not pay out if 'there is no evidence of forced entry to your car'. Neither will it foot the bill for 'any damage to or theft of your insured car including both internal and external fittings'.
This means not paying up if the criminal has badly dented bodywork, including lights, or ripped out or destroyed trim, such as part of the dashboard or leather seating, when breaking in - or if they have driven off in the vehicle.
In addition, 'damage to your front windscreen' is not covered and neither is theft of cash, pets or items not owned by driver or passengers.
PayByPhone has recently started offering an 'Add Insurance' option to 'ensure peace of mind' with insurance, which only lasts for the duration of their stay in the parking spot
Salmon says: 'This is nothing short of a rip-off. Although just a few pounds, add it up and if you park in this space five times a week then over a year it comes to more than £1,000.
'Check your home cover - just look under 'all risks' for valuables when taken away from the home. Call your insurer to double check you are already covered. If not, then you may have to add just £20 to the annual bill for cover of £1,000 worth of valuables left in a car. This Chubb insurance bolt-on is simply unnecessary.'
You should also consider the value of items kept in the car. For many, a handful of CDs, phone charger, pair of sunglasses and box of tissues are simply not worth extra insurance. Anything else should be put out of view and temptation from thieves under a seat or in the boot.
Such items will also already be covered under your existing motor insurance policy – though with a typical excess of £200 it might not be worth claiming unless the stolen goods are worth more than this amount.
One of the major selling points of the bolt-on insurance promoted on the app is that you do not need to tell your motor insurer if you make a claim through it – so you do not lose any no-claims bonus built up over the years.
Experts say the add-on insurance may already be covered in your usual policy - and could add up to a whopping £1,000 a year, depending on how often you use the parking app
However, many motorists already protect this no-claims bonus within their existing policy by paying a small additional premium of perhaps £20 each year.
An ABI spokesman says: 'Some insurers offer protected discount policies where you are allowed to make two claims over a three to five-year period without the motorist losing their no claims discount.'
It is for those motorists who have built up a healthy no claims discount on their motor cover – and do not pay extra to protect it – that the additional parking cover might offer value for money.
Another extra offer many motorists may have seen on their phones in recent weeks when paying for a parking spot using PayByPhone is for mental health counselling.
A message on the payment page states: 'Begin your wellness journey today. Get matched to a licensed counsellor online through BetterHelp and get 50 per cent off your first month.' It offers therapy on stress, depression and relationship problems – but not parking app anxiety. The full price for using such a service is up to £70 a week.
PayByPhone did not respond to requests for a comment. Chubb says it is offering the insurance as part of a nationwide trial with PayByPhone, charging a rate based on how long a customer is parked. The app takes an undisclosed commission for each sale.
Chubb said: 'Many motor and home insurance policies already cover theft from a vehicle. These can carry a high excess and a claim could have an impact on a no-claims bonus. If a claim is made on this policy, you would not usually need to let your primary insurer know.'
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