We’re pleased to be able to provide RAC breakdown cover as a policy enhancement for our motorhome, campervan, touring caravan, and car insurance customers.
The sole purpose of the cover is to provide motorists with assistance in the event of an electrical or mechanical breakdown on roads in the UK, with the option to extend this for European travel.
RAC breakdown policy holders benefit from a patrol-based service model, which attends around 80% of callouts, while contractors are used to support the remaining 20% of breakdowns.
We’ve been partnered with RAC since March 2022, although RAC’s vehicle breakdown insurance has been their core product for over 125 years. As a broking partner, we receive regular updates on their breakdown product performance and get an overview on the things RAC are doing to improve both the product and the service they offer to customers. This currently includes working to improve their levels of service by ensuring they have more than one contractor available in each territory. RAC have heavily invested in customised patrol vehicles, training of their own personnel and cutting-edge digital technology, all of which have contributed to enhanced roadside assistance and high levels of customer satisfaction. They also have a Vulnerable Customer Policy, set out to ensure positive outcomes, for all policy holders.
In their breakdown product review update, from April 2022 to March 2023, RAC revealed their claims acceptance rate was 95.36%. With economic pressures continuing to affect UK households, their research[i] indicated that drivers are delaying servicing their vehicles to save costs, which in turn is leading towards more complex faults that result in increased tows. Tyre faults have exceeded battery related issues as the number one cause of breakdowns and could correlate with a rise in the number of potholes on UK roads.[ii]
The review indicated that overall, the RAC product offers a greater level of cover, when compared to similar products on the market including:
RAC continue to stress that the lower the level of cover chosen, the greater the risk that a breakdown will not be adequately covered. For example, if you have roadside only cover, any claim requiring a long recovery or a breakdown that occurs at home, would not be covered. Therefore, recovery of the vehicle could only be offered as a chargeable solution. Their stats indicate that between April 2022 and March 2023, 23.9% of customers had roadside assistance AND recovery included in their policy, whereas 45.65% had roadside assistance only.
For further information on RAC cover through Lifesure, visit the appropriate insurance page on our website or speak to one of our friendly advisors on 01480 402 460.
Disclaimer: The sole purpose of this article is to provide guidance on the topic covered. This article is not intended to give legal advice, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area.
[i] RAC research shows around 23% of drivers are now either looking to delay servicing or do it themselves. Source: March 2023 survey of RAC Driver Opinion Panel
[ii] RAC patrols went to the rescue of 10,076 drivers who had fallen foul of potholes in the first three months of the year, a 39% increase on the same period a year ago, RAC breakdown data shows.