British Gas - HomeCare 400 + Kitchen Appliance Cover - Are we being ripped off?

Parisian

In a quest to help my mother with her finances, I have been looking at all her policies as they come up for renewal...

Her annual renewal notice has just come in from British Gas for:
1. Homecare 400 - Central heating cover with annual service visit, plumbing & drains cover, home electrical cover at £594.30
2. Kitchen Appliance Cover - for fridge, washer/dryer and washing machine at £150
The TOTAL is £738.30 !!

My mother is elderly and vulnerable, and I do think we need a policy in place as she just cannot handle rogue traders. However, she is also extremely short of cash and this seems like a huge sum - is she being ripped off?

Note - She has called them out during the year - I've noted however, that it took 3-4 call outs to sort one issue with the boiler, where each engineer said the last had not done a proper job (it sounded unprofessional), and I'm sure they counted that as multiple separate call outs for one thing that wasn't attended to correctly.

So:
1. Is she being ripped off? Or are people paying similar prices? I know the costs for being a new customer, but was interested in other current customers.
2. Are there any other similar products with other companies that are worth checking out?

Thanksssss

Cardew

There has been endless debate on MSE about Central heating Servicing/repair contracts and appliance cover.

BG's Homecare cover is extremely expensive but not IMO a 'rip off'; the appliance cover premium seem particularly bad value.

However there are apparently no schemes that are cheaper/better.

On balance you mother would be far better off putting the £738.30 in a building society account and paying for repairs on an 'as and when' basis.

That said, many older people understandably put a high value on the security and 'peace of mind' that such schemes offer. BG are apparently particularly good for vulnerable customers.



It would be well worth asking neighbours if they know of reliable and honest plumber in her area.

ihateyes

Cardew wrote: »

the appliance cover premium seem particularly bad value.

The appliance cover is actually very competitive with whats on the market.

Cover suits different type of people.

Joyful

I have to say I have exactly the same cover. For peace of mind this suits me and I have had them out to deal with a dishwasher, electric and plumbing so far. One of my jobs would have cost in the hundreds so it suits me to only have one company to contact. I do work for BG but did a lot of research re other companies before I took the cover out and am very happy with it. I am the type of person who does not like unexpected bills and I know that if I put money aside I would spend it.

One suggestion if your Mum wants to stay with BG is to call and see if they can give her a reduction due to her needing to save money.

Cardew

2. Kitchen Appliance Cover - for fridge, washer/dryer and washing machine at
£150

ihateyes wrote: »

The appliance cover is actually very competitive with whats on the market.

It may well be competitive for that market, but that doesn't prevent £150pa for 3 appliances being bad value - IMO of course.

Whilst it may be atypical, I extended the 2 year warranty to 5 years for 7 Neff kitchen appliances (American fridge freezer, dishwasher, combination microwave, oven, induction hob, extractor, warming draw) for a total premium for the 3 years of £250( £83 pa)

However as said in my first post, people understandably put a different value on 'peace of mind'.

macman

Appliance cover for a fridge is frankly absurb. Modern white goods are generally very reliable. If they do break down, it's liley to be in the first year or two when still in warranty. Similarly w/machines and tumble driers.
I'd keep the CH cover if she must have 'peace of mind'. but drop the electrical and drain cover.
The question to ask is: how often has she used any of these services in the time she's had them?
There are plenty of reliable and honest independent local plumbers, electricians and white goods engineers around, you just need to spend a bit of time researching them. Many will also offer service plans too.

Parisian

Thank you all for your replies... Much appreciated
Unfortunately, my mum is very vulnerable with an added recent turn of bad health. I don't think she would be able to manage traders (even if she did save the money) & I am not always within a helping distance when things go wrong. We have had some very bad experiences in the past with rogue traders, particularly when I am not around to check.
We have had problems in the past with the fridge, washing machine, drier, boiler, heating, drains. The only cover we probably haven't used is the electrical one.

I guess I am going to stick with British Gas, but will definately call them and try to bring the price down. What have people said to successfully bring down the price? I find that these telephone calls are either really straightforward and easy (ask for details of leaving, a price reduction is offered to stay) or just really really difficult. Any tips?

Thanks again

Parisian

Just thought I'd update .... I gave British Gas a call, and got a £110 discount without too much hassle. Happy days

purplelotus

Parisian wrote: »

Just thought I'd update .... I gave British Gas a call, and got a £110 discount without too much hassle. Happy days

I was paying them £14 per month and got an advert through the post for "new customers only" for £12.75 per month. I phoned up and said I didn't expect to be paying more as a loyal customer than a new customer would, the lady on the phone said she'd "have a look to see what I can do for you", she gave me 10% off. So it's now £12.60.

I consider it to be a good use of cash as I have had to call them out twice, once because the hot water stopped working - the limescale had stopped the pressure thingie being aware I'd turned the hot tap on, and the second time because the hot water took ages to come on as the diaphragm had broken between water and radiators so it was heating up all the radiators before the tap water, even when the heating was off. I dread to think how much these would have cost to have repaired. The boiler is 10 years old so soon (in a year or two?) we will stop the payments and the next time it dies it will be time for a new one, with the money saved from the monthly payments going a little way towards the cost.