Is boiler cover worth it? An honest look at the maths

Boiler cover is a monthly payment that bundles an annual service with repair cover, for roughly £8 to £25 a month. The honest answer to whether it is worth it: usually not, over several years, but it can be. Consumer research finds year after year that paying as you go works out cheaper on average. Where cover earns its place is when a surprise £400 bill would be a real problem and your boiler is out of warranty but still reliable.

This guide has the maths, the scenarios, and the six exclusions that decide whether a policy actually helps you.

Points to take away

• Cover costs £96 to £300 a year, plus an excess of £50 to £99 per claim.
• Over one year, pay as you go is usually cheaper. Over ten, it depends on fault frequency.
• Break-even is roughly one significant repair every one to two years.
• If your boiler is under manufacturer warranty, you do not need cover.
• On an old boiler, cover often will not pay out. Read the age and exclusion clauses first.

Reading time: about 6 minutes.

What boiler cover costs

Against that, a typical repair costs £150 to £400, and a standalone annual service is around £100. Our guide to boiler service and repair costs has the detail.

The honest maths

Do this on paper for your boiler.

1. Take the annual cover premium. Say £180.
2. Subtract the cost of a standalone service you would pay anyway, about £100. Net cost of the “insurance” part: £80 a year.
3. Add the excess you would pay per claim, say £60.
4. So a year with one claim costs you £140 in premium-plus-excess, versus paying £150 to £400 for the repair directly.

If your boiler needs a real repair most years, cover roughly breaks even or wins. If it faults once every three or four years, you are paying £80 a year to avoid a bill that averages under £100 a year. Self-insuring wins.

When cover is worth it

• The boiler is 5 to 8 years old and out of manufacturer warranty, but reliable.
• A sudden £300 to £500 repair would be a genuine problem for your finances.
• You want the annual service handled without having to organise it.
• You are a landlord who values a predictable monthly cost across a portfolio.
• You have had two or more repairs in the last couple of years and the boiler is not yet old enough to replace.

When it is not worth it

• The boiler is under manufacturer warranty. You are paying twice.
• You have savings that could absorb a £500 repair without stress.
• The boiler is old and unreliable. Cover on a boiler near the end is money that would be better saved towards a new one. See the signs a boiler needs replacing.
• You are disciplined enough to set the premium aside each month as a repair fund.

The six exclusions to read before you buy

This is where policies disappoint people. Before signing, check the wording on all six.

1. Age cap. Many insurers will not cover a boiler over a set age, often 7 to 15 years. Some cover it but exclude the parts most likely to fail.
2. Pre-existing faults and wear. A noise or fault the boiler already had is not covered. An engineer’s first visit can be used to decline future claims.
3. Repair versus replacement. Read whether the policy repairs the boiler or only pays a contribution towards a new one if it is beyond economical repair. A £200 contribution against a £2,500 replacement is not much cover.
4. Sludge and scale. Damage caused by a system that was not flushed or has no inhibitor is often excluded. That covers a lot of real-world boiler faults.
5. Call-out limits. Some policies cap the number of call-outs or the total payout per year.
6. The no-claims period. You usually cannot claim in the first 14 to 30 days, so signing up when the boiler is already playing up will not help.

Cover versus a new boiler on an old unit

If your boiler is 12 years or older and has cost you money recently, compare three numbers over the next five years: five years of cover premiums, likely repair bills, and the cost of a new boiler spread over its life plus the efficiency saving.

For an old, tired boiler, the new-boiler option often comes out ahead once you count the avoided repairs and the lower risk of a mid-winter failure. Our guide to what a new boiler costs breaks the price down.

Bottom line

Cover suits a reliable, out-of-warranty boiler where a big bill would hurt. It rarely suits a new boiler, a household with savings, or a boiler near the end of its life. Whichever way you go, keep up the annual service.

Get free quotes from Gas Safe registered engineers covering your postcode for a repair or service, or browse the directory to find heating companies registered in your area.