Parking apps are now trying to take your insurance, but would it actually cover you?

Motorists are being targeted by a new wave of unnecessary extras offered by parking apps, including a ‘rip-off’ insurance policy that could double the cost of your parking space.

Motorists 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use a smartphone app to pay to park their car on the street or in a car park as meters and ticket machines are quickly withdrawn.

There are now about 30 such smartphone apps available. The apps typically work in multiple car parks and other areas where you can park your car in Britain.

But some of these now offer motorists additional offers aimed at encouraging them to spend more money on a parking space. They charge for everything from paying to receive text messages ten minutes before your parking permit expires, to car contents insurance and even online advice services. .

One of the most popular parking apps, PayByPhone, recently offered the option of ‘Add Insurance’.

When motorists start paying for their parking via the app, they will be given the opportunity to ‘guarantee peace of mind’ with insurance that only applies to the duration of their stay in the car park.

‘Protect your personal belongings. No deductible. Keep your no-claims discount,” the ad says, to entice 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, said: ‘They are using a scare tactic to scare motorists into cover they don’t need.

‘Because you can usually only claim one insurance policy, this car contents insurance is a total waste of money; You should already be fully covered on your home or motorcycle policy.’

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

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

The coverage covers ‘theft of your personal belongings’ and ‘damage to the side or rear window(s) of your car up to a maximum of €2,000 per claim’ for the duration of your parking session.

However, it is not worth it if ‘there is no evidence of your car being broken into’. She will also not pay the bill for ‘any damage to or theft of your insured car, including both the interior and exterior furnishings’.

This means that during the burglary the criminal has seriously dented the bodywork, including the lighting, or torn off or destroyed upholstery, such as part of the dashboard or the leather seats, or if he has driven away with the car.

In addition, ‘damage to your windscreen’ is not covered, nor is theft of cash, pets or items not owned by the driver or passengers.

PayByPhone recently started offering an ‘Add Insurance’ option to ‘ensure peace of mind’ with insurance, which is only valid for the duration of their stay in the car park

Salmon says: ‘This is nothing short of a rip-off. Even if it’s just a few euros, add it up and if you park in this spot five times a week, it will amount to more than € 1,000 in a year.

‘Check your home coverage. Check under ‘all risks’ whether valuables are being taken from your home. Call your insurer to check if you are already covered. If not, you may only need to add $20 to the annual bill to cover $1,000 worth of valuables left in a car. This additional insurance from Chubb is simply not necessary.’

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

Such items are also already covered under your existing car insurance policy – ​​although with a typical excess of £200 it may not be worth making a claim unless the stolen goods are worth more than this amount.

One of the key selling points of the additional insurance promoted in the app is that you don’t have to tell your car insurer if you’re making a claim through them. So you will not lose any no-claim bonus that you have built up over the years. .

Experts say the additional insurance may already be covered in your usual policy – and could amount to as much as £1,000 a year depending on how often you use the parking app

However, many motorists already protect this no-claim bonus within their existing policy by paying a small additional premium of perhaps £20 per year.

An ABI spokesperson said: ‘Some insurers offer protected discount policies, where you can make two claims over a period of three to five years without the motorist losing their no-claims discount.’

For motorists who have built up a healthy no-claims discount on their motorcycle cover – and aren’t paying extra to protect it – the additional parking cover can provide value for money.

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

A message on the checkout page states: ‘Start your wellness journey today. Get matched with a certified advisor online through BetterHelp and receive a 50 percent discount on your first month.’ It offers therapy for stress, depression and relationship problems, but not parking app anxiety. The full price for using such a service is up to £70 per week.

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

Chubb said: “Many car and home insurance policies already cover theft from a vehicle. These may have a high deductible and a claim may have consequences for a no-claim bonus. If a claim is made under this policy you generally do not need to report it to your main insurer.’

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