£700 is a lot of money for a just in case policy, I'd be tempted to just bank the money, all depends on how long you intend to own the car but if £700 was their first offer you could no doubt get it cheaper, I would suggest calling the dealers, ask to speak to one of the buisiness managers and ask him for his best offer, before you do this get some info off the net for similar cover, they will usually try and match it especially if they are struggling to hit their quota for financial products that month.