Why Boiler Cover Is Not Worth It & What British Gas Don’t Want You To Know

The facts you must know!

Boiler cover should provide peace of mind – but for most it’s a false economy. 

Kev Wright of M&E Services reveals some tips and tricks and the alternatives to expensive cover.

If you’re paying for boiler cover, you probably don’t need to be.  Year after year, research finds that monthly boiler cover payments typically add up to more than paying for an annual service, plus any repairs when needed.

Whether you stop paying for boiler cover, or you stick with it, read on to find out how to save money and avoid being stung by escalating prices.

Loyalty Not Rewarded

Boiler cover is often cheaper for the first year, with customers being lured in by introductory deals.  Prices usually climb after that, though, punishing loyal customers.  Which? found that 70% of renewal quotes were more expensive than initial quotes, 21% were the same and just 3% were lower.

Some companies are more open than others about their price increases.  HomeServe, for example, state that its most basic cover jumps from £100 for the first year to a whopping £210 for the second year.

So, why would you even consider them?

British Gas is the market leader with the largest amount of customers.  But it’s poor value for money for long-time customers. Those who have been with British Gas for one to two years, with a policy including at least an annual service and boiler repairs, pay, on average, 7% more each year than customers of other companies.  After three to four years, British Gas customers face a 19% higher bill than customers of other providers.

Getting a Better Deal

Boiler policy providers benefit hugely from customers’ inertia.  Despite the high likelihood of getting a pricier renewal quote, only 27% of respondents tried to negotiate a better deal. 

Everyone else allowed their policy to roll over from one year to the next, or accepted the quote they received.

If you want boiler cover and also want to stay with the same provider, haggle.  Arm yourself with quotes from elsewhere, highlight any instances where your provider didn’t meet expectations and threaten to switch provider – and mean it.

Maintenance Without Cover

Buying a reliable boiler will reduce the likelihood of your boiler needing repairs, regardless of how those repairs are paid for.   Annual services will also keep your boiler in the best condition.

#Tip#    Boiler Brands Standard & Extended Warranties

If you need a new boiler, research the boiler brands by how long the warranty is they offer. It really doesn’t need to be anymore complicated than this!

The 1 Major Thing British Gas Won’t Tell You!

We have visited copious amounts of customers who have or have had service contracts with British Gas.

I always ask when the customer purchased the boiler to work out how much warranty they have left. Before I knew what British Gas was doing to all of their customers who had new boilers installed by them, the answers that came after shocked me.

To explain this, we have to go back a step.

So, let’s take Worcester Bosch gas boilers as an example. If you are an installer and install over 20 of their boilers per year, Worcester Bosch will offer a 12 year warranty. So, if your boiler goes wrong, it is Worcester Bosch’s directly employed service engineers who come out and repair the boiler.

Now back to British Gas

When British Gas install a Worcester Bosch boiler, British Gas will give their “loyal customers” (who have paid a premium) a market leading 5 year warranty!

So, let’s work this out.

Worcester Bosch boilers will provide British Gas with a FREE 12 year warranty and British Gas decide to give you 50% of this free warranty!

Why?

Because this effects how much they will make (or not make) on their service and maintenance contracts charging you over £200 per year!

#Tip#    How to save money fast if you have had a new boiler fitted recently?

Call the manufacturer and check what FREE warranty you are entitled to, then cancel your monthly service and maintenance contract!

Simple, right?

There is only ONE condition to the contract.

You need to have an annual boiler service.

Any GasSafe registered engineer can provide this.

That’s it!

We service boilers in Spalding, Lincolnshire. The average price for a gas boiler service in the Spalding area is £65 plus VAT, so the equivalent of £78 per year instead of over £200 if you’re with Homeserve!

Summary – Over 12 Years

Local Gas Engineer Service Cost – £936

HomeServe (or British Gas) – £2400

This is not allowing for price increases.

Take your pick!

Now let’s round this off with a true story.

I once was called to a potential customers house to quote for a new gas boiler in Boston, Lincolnshire, it was probably around 2014. Let’s call her Mrs S.

I duly arrived and after looking at the system advised what I thought was needed and told the customer I would send a quotation, with various options for them to consider.

Some time passed and when I called to follow the quote up, I was told I was unsuccessful and was thanked for my time, I was told they preferred to have British Gas install their new boiler as they had the expertise to install, as the job was a little tricky. I thanked the customer and wished them all the best.

I shortly thereafter was approached by British Gas (for the then second time in my career) to install some systems for them as they had lost their employed engineer, moreover, they use sub-contractors all the time, as do Homeserve and all of the bigger names.

Now, at the time, I had my eldest son in college and with our focus at that time heavily on renewable energy, I needed more gas installations to give him the experience he needed for this college work, so the timing was perfect, for once.

So I agreed to installing a boiler per week for them.

A couple of weeks later, we turned up at our first job.

You may be able to guess the rest.

It was Mrs S! To see the look on her face, I cannot to this day forget it. I did the job and she was delighted, but she could have saved a fortune!

The moral of the story is, just because the large outfits have the funds to appear on TV, radio and any interruption media you care to mention, don’t think they are any better, because in most cases they are probably going to give you a poorer service and it’s going to cost you more!

I hope this article has been helpful!

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M&E Services (Lincs) Ltd t/a M&E Services, Red Lion Quarter, Red Lion Street, Spalding, PE11 1SX

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M&E Services (Lincs) Ltd. 20-22 Wenlock Road, London, England, N1 7GU. Company No: 14666876. Registered in England and Wales.