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Pay-on-use breakdown cover will help cut costs

BUSINESSES could be spending thousands of pounds on unnecessary annual breakdown cover which they never use. So why not choose pay-on-use breakdown cover, suggests FSG chairman, Geoffrey Bray?

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BUSINESSES could be spending thousands of pounds on unnecessary annual breakdown cover which they never use. So why not choose pay-on-use breakdown cover, suggests FSG chairman, Geoffrey Bray?TODAY’S vehicles are increasingly reliable. Yet businesses can often waste money on annual breakdown cover – which they never use.

However, there is an alternative – pay-on-use vehicle breakdown and recovery. It’s a concept rather like daily rental car hire: there when you need it. And when you do, you only pay for use.

Pay-on-use vehicle breakdown is something we, at FSG, offer through our own motoring organisation: identical peace of mind service offered by the well-known national motoring organisations; however, companies only pay for the service when they use it.

Indeed, the AA admits that in the last five or six years the number of call-outs has reduced due to the increasing reliability of modern vehicles. In addition, motoring organisations calculate that around 80% of call-outs result in the problem being fixed at the roadside.

Virtually every vehicle on FSG’s books initially comes with manufacturer-provided free-of-charge breakdown and recovery. However, when the manufacturer-provided cover expires, many business car managers automatically buy annual breakdown and recovery cover.

I understand that organisations and their drivers feel they have peace of mind if they buy annual cover. However, in our experience, the vast majority of business vehicles go through their entire life without requiring the services of a roadside breakdown and recovery operator.

Membership of FSG’s own national motoring organisation – CARE (Car, Accident, Roadside Emergency Services) – is free, with charges applied on a pay-on-use basis. Cover is 24/7, 365 days a year that delivers peace of mind to both businesses and their drivers in the event of a breakdown.

With the economic downturn having thrown companies’ focus increasingly on cost management it seems a common-sense move to only pay for services that are used.

We believe that pay-on-use breakdown and recovery is the route that cost-focused companies should follow. After all, why pay for a service that will never be required?

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