The free insurance perks hiding in your bank account that could save you hundreds – are you missing out?

savings, money, annuity insurance, retirement and people concept – close up of senior woman hand putting coin into piggy bank Credit: Getty – Contributor MILLIONS of Brits could be paying twice for insurance they already get for free through their bank account – or missing out on perks worth hundreds of pounds a year. Packaged bank accounts charge customers a monthly fee in exchange for a bundle of benefits such as travel and mobile phone insurance, car breakdown cover and cashback. Some even throw in extras including airport lounge access, cinema tickets, railcards and free food and drink to entice customers too. Used regularly, the benefits can be worth considerably more than the account fee and could save you huge amounts of money compared with buying the same cover separately. Sign up for the Money newsletter Thank you! For example, Lloyds claims the insurance included with its Platinum account is worth an average £682 a year, while the account itself costs £270 annually. That could represent a saving of £412 for someone who would otherwise buy equivalent cover separately. Meanwhile, Santander’s Edge Explorer account offers up to £240 a year in cashback alone, compared with its £204 annual fee – before the value of its insurance benefits is even taken into account. But packaged accounts won’t be good value for everyone. If you don’t use the perks or could buy the insurance you need more cheaply elsewhere, you could needlessly be paying the fees. It’s also worth checking your existing account before taking out separate insurance, as you could already have the cover you need without realising it. Most read in Betting The Sun has rounded up some of the major packaged bank accounts currently available and what you get for your money. Packaged bank accounts can save you a lot of money if you use them fully Lloyds Silver Lloyds’ Silver packaged bank account costs £11.50 a month, or £138 a year. It includes European and UK family travel insurance, AA family breakdown cover and worldwide mobile phone insurance. Customers can also use their debit card abroad without paying Lloyds’ usual foreign currency transaction fees. Lloyds says comparable insurance benefits would cost an average £318 a year, based on research carried out by Consumer Intelligence in June. That includes £157 for travel insurance, £59 for breakdown cover and £102 for mobile phone insurance. That means the bank claims customers who would otherwise buy equivalent cover separately could save £180 a year after accounting for the £138 annual account fee. Lloyds Platinum Customers wanting more extensive cover can opt for Lloyds’ Platinum account. It costs £22.50 a month, or £270 a year, and includes worldwide family travel insurance, AA family breakdown cover and mobile phone insurance. Again, customers can use their debit card abroad without paying Lloyds’ foreign currency transaction fees. Lloyds says equivalent insurance would cost an average £682 a year. It values comparable worldwide travel insurance at £513, breakdown cover at £67 and mobile phone insurance at £102. That means someone who would otherwise pay for all three separately could potentially save £412 a year after the account fee. However, your actual saving will depend on how much equivalent insurance would cost you personally. Halifax Ultimate Reward The Halifax Ultimate Reward Current Account costs £19 a month, adding up to £228 a year. Customers get worldwide family multi-trip travel insurance, AA family breakdown cover and mobile phone insurance. It also includes home emergency cover, which can provide help with unexpected problems such as certain plumbing, heating and electrical emergencies, subject to the policy terms. Halifax also does not charge its own debit card fees when customers use their card abroad. Before buying separate travel, phone, breakdown or home emergency insurance, customers with this account should therefore check whether they are already covered. Nationwide FlexPlus Nationwide‘s FlexPlus account costs £18 a month, or £216 a year. It includes worldwide family travel insurance, worldwide family mobile phone insurance and UK and European breakdown assistance. Nationwide also does not charge a transaction fee when FlexPlus customers use their debit card abroad. The family cover could make the account particularly useful for households that would otherwise need to buy several separate policies. However, customers should check the eligibility requirements and exclusions before relying on the cover. NatWest Reward Silver NatWest’s Reward Silver account costs £10 a month, or £120 a year. Its perks include European travel insurance and mobile phone insurance. Customers can also earn NatWest Rewards and make debit card purchases abroad without paying a NatWest foreign transaction fee. At £120 a year, it is one of the cheaper packaged accounts available, but you’ll still want to check whether the benefits you actually use are worth more than the fee. NatWest Reward Platinum NatWest’s Reward Platinum account costs £22 a month, or £264 a year. It comes with worldwide travel insurance, mobile phone insurance and UK breakdown cover. Customers can also earn Rewards and use their debit card for purchases abroad without NatWest charging a foreign transaction fee. Again, whether it is worth paying £264 a year will largely depend on whether you would otherwise pay separately for the included insurance. This could depend on your health, where you live and work, and any conditions that could drive up your insurance prices. NatWest Premier Reward Black NatWest’s Premier Reward Black account is aimed at its Premier customers and currently costs £36 a month, or £432 a year. It comes with a much wider range of benefits, including worldwide family travel insurance, UK and European breakdown cover and mobile phone insurance. Customers can also get airport lounge access, concierge services, home emergency cover and NatWest Rewards. NatWest currently puts the annual value of the account’s benefits at £2,461. However, that doesn’t mean every customer will personally save more than £2,000, as you would need to use the benefits and otherwise be willing to pay for comparable services. The account is also changing from October, including an increase in the monthly fee, so customers should check what their package will include going forward. Santander Edge Explorer Santander’s Edge Explorer costs £17 a month, or £204 a year. It includes worldwide family travel insurance, UK and European breakdown cover, family mobile phone insurance and access to a remote GP service around the clock. But customers can also earn cashback that could potentially offset the entire account fee. The account pays 1% cashback on selected household bills, capped at £10 a month, and 1% cashback on eligible supermarket and travel spending, also capped at £10 a month. Someone who earns the maximum £20 every month would therefore receive £240 a year in cashback. That’s £36 more than the £204 annual account fee before putting any value on the included insurance and other benefits. However, you’ll need to spend enough in the qualifying categories to earn the maximum cashback. Co-op Everyday Extra The Co-operative Bank’s Everyday Extra account costs £12 a month – £144 a year. It includes worldwide travel insurance, mobile phone insurance and RAC breakdown cover in the UK and Europe. You must be registered with a UK medical practitioner for the travel insurance benefits. The bank has also scrapped its foreign transaction fee for debit card spending abroad. The account fee was recently cut, so existing customers should make sure they know what they’re currently paying and what cover they receive. Virgin Money Club M Virgin Money’s Club M account costs £14 a month, or £168 a year. It includes worldwide family travel insurance and UK and European breakdown cover, and customers also get mobile phone and gadget insurance. The gadget cover can include items such as laptops, tablets and cameras, subject to the policy terms and limits. That could be particularly useful for households that are separately paying to insure several expensive devices. Monzo Max Monzo’s Max account costs £19 a month, or £228 a year for an individual person, and it includes worldwide travel insurance, mobile phone insurance and RAC breakdown cover in the UK and Europe. But unlike many traditional packaged accounts, it also bundles in a range of everyday perks. These include an annual Railcard, Uber One membership, a weekly Greggs treat, a monthly Vue cinema ticket and YouTube Premium Lite. Monzo says the total perks included with the account are worth more than £300 a year. However, you’ll only get the full value if you actually use them all. Barclays Barclays takes a slightly different approach by allowing eligible current account customers to pay for separate packs of benefits. Its Travel Pack costs £14.50 a month and includes worldwide travel insurance and European RAC breakdown cover. Meanwhile, its Tech Pack costs £17.50 a month and can provide cover for phones and other gadgets, subject to its policy conditions. This can allow customers to choose the type of cover they actually need rather than paying for a larger bundle of benefits. Is a packaged bank account worth it? Packaged accounts can represent good value, but only if you actually need and use the benefits included. Start by multiplying the monthly fee by 12 so you know exactly what the account costs you each year. Then make a list of the benefits you use and check what buying equivalent cover separately would cost. Don’t simply rely on a bank’s advertised valuation, as the price of insurance varies depending on factors such as your age, medical history, destination and the level of cover you need. You should also check the terms of any insurance included with your account. For example, travel insurance can have age limits, restrictions relating to existing medical conditions and maximum trip lengths, while breakdown policies may offer different levels of cover. Most importantly, check what you already have before buying another policy. If your bank account already includes travel, mobile phone or breakdown insurance, taking out another policy could mean you’re needlessly paying twice for similar cover. Equally, if you’re paying a monthly packaged-account fee but haven’t used any of its benefits for years, it could be worth considering whether a free current account would leave you better off. Comment now