Parking apps now try to cover your insurance, but would they really cover you?

Motorists are being hit with a new wave of unnecessary extras offered by parking apps, including a “rip-off” insurance policy that can double the cost of your parking.

Drivers are increasingly forced to use a smartphone app to pay for parking on the street or in a parking lot, as parking meters and ticket machines quickly sell out.

Currently there are about 30 such applications available for smartphones. The apps usually work in various car parks and other areas where you can park your car in the UK.

But some of them are now offering drivers additional deals aimed at getting them to spend more on the parking space: charging for everything from paying to receive text messages ten minutes before your parking permit expires to insuring the contents of the car. automobile and even online advisory services. .

One of the most popular parking apps, PayByPhone, has recently started offering an “Add Insurance” option.

When drivers go to pay for their parking through the app, they are presented with an option to “guarantee their peace of mind” with insurance, which only lasts for the duration of their stay in the parking space.

‘Protect your personal belongings. Without excess. Keep your no-claims discount,” the ad says, to attract drivers.

For example, if you pay £4.20 for a full 12-hour day in a car park in Bishop’s Stortford, Hertfordshire, you will be presented with an ‘Add Insurance’ button encouraging you to double the price paid to £8.40.

Jeff Salmon, claims assessor at Salmon Assessors, says: “They are using a scare tactic to scare motorists into getting cover they don’t need.”

“As you can usually only claim on one insurance policy, this car contents insurance is a complete waste of money – it should already be fully covered on your home or car policy.”

Drivers may be forced to pay for the policy out of fear that coverage is necessary because they have parked in a high crime area or believe they do not yet have protection.

The PayByPhone offer is offered by insurer Chubb and is for limited use.

It covers ‘theft of your personal items’ and ‘damage to the side or rear windows of your car up to a maximum of £2,000 per claim’ for the duration of your parking session.

However, it is not paid if “there is no evidence of forced entry into your car.” It will also not be responsible for “any damage or theft to your insured vehicle, including internal and external accessories.”

This means not paying if the criminal has badly dented bodywork, including the lights, or decorative parts torn off or destroyed, such as part of the dashboard or leather seats, when entering the vehicle, or if he has driven off with the vehicle.

Additionally, “front windshield damage” or theft of cash, pets, or items not owned by the driver or passengers are not covered.

Salmon says: ‘This is nothing short of a scam. Although it is only a few pounds, if you add it up, if you park in this space five times a week, in a year it will cost you more than 1,000 pounds.

‘Check your home coverage; simply search ‘all risks’ for valuables when you take them out of the house. Call your insurer to verify that you are already covered. Otherwise, you may have to add just £20 to the annual bill to cover £1,000 worth of valuables left in a car. “This add-on to Chubb’s insurance is simply unnecessary.”

You should also consider the value of the items stored in the car. For many, a handful of CDs, a phone charger, a pair of sunglasses and a box of tissues simply aren’t worth extra insurance. Anything else should be kept out of sight and out of the temptation of thieves under the seat or in the trunk.

These items will also be covered by your existing car insurance policy, although with a typical excess of £200 it may not be worth claiming unless the stolen goods are worth more than this amount.

One of the main selling points of the supplemental insurance promoted on the app is that you don’t need to inform your car insurer if you file a claim through them, so you don’t lose any no-claims bonuses built up over the years. . .

However, many drivers already protect this no claims bonus within their existing policy by paying a small additional premium of perhaps £20 each year.

An ABI spokesperson says: “Some insurers offer protected discount policies where two claims are allowed to be made over a period of three to five years without the driver losing their no-claims discount.”

It’s for those motorists who have built up a healthy no-claims discount on their car cover (and aren’t paying extra to protect it) that additional parking cover could offer good value for money.

Another additional offer that many drivers have seen on their phones in recent weeks when paying for a parking space with PayByPhone is mental health counseling.

A message on the checkout page reads: ‘Start your wellness journey today. Get a licensed counselor online through BetterHelp and get 50 percent off your first month. It offers therapy for stress, depression, and relationship problems, but not parking app anxiety. The total price for using this service is up to £70 per week.

PayByPhone did not respond to requests for comment. Chubb says he offers the insurance as part of a nationwide trial with PayByPhone, charging a fee based on how long a customer is parked. The app charges an undisclosed commission for each sale.

Chubb said: ‘Many car and home insurance policies already cover theft of a vehicle. These can carry a high excess and a claim could impact a no-claim bonus. If a claim is made under this policy, you will not normally need to notify your primary insurer.’